Free tool

Discount & Profit Calculator

On a $20 item that costs you $8, a 20% discount does not cost you 20% of your profit. It costs a third of it. Enter your price, your cost and the deal you have in mind, and see how many more sales it needs just to break even, before you print the flyer.

Discount & Profit Calculator

Your numbers

$
Enter your cost
$

Only what one more sale costs you: the product or ingredients, packaging, card fees, any commission. Leave out rent and wages; they stay the same whether the promotion works or not.

The promotion

% off

Optional

What the deal does

If the deal brings in more sales

% more

Assumes every sale during the promotion gets the deal, the way a storewide discount works. A coupon only some customers use costs you less.

Common discounts at your margin

Break-even sales for common percentage discounts at your price and cost
DiscountPriceProfit per saleSales needed

Margin vs markup

Two different numbers that get mixed up. Margin is profit as a share of the price; markup is profit as a share of the cost.

$
$
% margin on that cost

How to use it, and why it matters

How to use

Count only the cost of one more sale

Cost here is what one extra sale costs you: the product or ingredients, packaging, card fees, a platform commission. Rent and wages stay the same whether the deal works or not, so leave them out. If you only know your food or product cost as a percentage, switch the cost box to %.

Why it matters

A discount comes out of profit, not price

A $20 item that costs $8 makes $12. At 20% off it sells for $16 and still costs $8, so it makes $8, a third less on every sale. You need 50% more sales just to end up where you started, and the thinner your margin, the faster that number climbs.

Do it right

Give the deal an end date and count it

Use a code or a separate button so you know who used it, and compare the weeks before and during. A minimum-spend deal like “$10 off orders over $50” can cost less than a straight percentage because people spend more to get it; run both through the calculator. Our Google and Meta ads service can put the deal in front of people nearby.

Want us to do this for you?

We run Google and Meta ads, Google Maps SEO, websites and delivery-platform growth for restaurants, salons, dental offices, auto shops and service businesses across the San Fernando Valley. Free 15-minute call, no pitch deck.