Discount Profit Calculator
Calculate how a discount affects your profit. Works for any marketplace — select a platform preset or enter your own fee rates.
By Marginory team · Online sellers with hands-on experience across Etsy, Shopify & PODUpdated Fee data verified against official platform documentation
Pricing
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Sale price: $24.00
Costs & Fees
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Before vs. After Discount
Full price profit$18.00
Full price margin60.0%
Sale price (20% off) profit$12.00
Sale price margin50.0%
Profit lost per unit$6.00
Discount safety limits
Break-even price$12.00
Maximum discount (break-even)60.0%
Extra units needed (vs. 100 at full price)+50
How this is calculated
Sale price: Original price × (1 − Discount%)
Profit at sale price: Sale price − Fees − Product cost − Shipping
Max discount: 1 − (Break-even price / Original price)
Extra units needed: (Full-price profit × Baseline units − Sale profit × Baseline units) / Sale profit per unit
Assumptions:
- Fees calculated on the discounted sale price
- Break-even: price where profit = 0
- Extra units based on 100-unit baseline for comparison
Frequently Asked Questions
How do I calculate profit after a discount?
Sale price = Original price × (1 − Discount%). Profit at sale price = Sale price − Fees − Product cost − Shipping. A $30 item at 20% off sells for $24; if fees run $2.50 and product cost + shipping is $10, profit drops from roughly $13.50 at full price to about $11.50 at the discounted price — a smaller cut than the 20% price cut, because fixed costs don't discount.
What's the maximum discount I can offer without losing money?
Max discount = 1 − (Break-even price / Original price). If your break-even price (the price at which profit = 0) is $18 and your original price is $30, max discount = 1 − (18/30) = 40%. Anything beyond that turns the sale into a loss on that unit, regardless of volume gained.
How many extra sales do I need to make up for a discount?
Extra units needed compares total profit at full price against total profit at the discounted price, divided by profit-per-unit at the discount. A 20% discount that cuts profit-per-unit from $10 to $6 means you'd need roughly 67% more units sold just to match your original total profit — discounts often require far more volume lift than sellers assume to break even on total profit.
What's a common mistake sellers make when running discounts?
Discounting off the sale price without recalculating platform fees, which are usually charged as a percentage of whatever price the item actually sells at. A 20% off sale doesn't just cut $6 off a $30 item — it also lowers the platform fee slightly, but not enough to offset the lost revenue. The dollar-for-dollar hit to profit is almost always larger than sellers expect.
When does a discount actually make sense?
Discounts work when they're financed by genuinely higher volume (clearing inventory, winning a search-ranking boost from 'on sale' badges) or when marginal cost per unit is near zero (digital products). They work poorly on already-thin-margin physical goods, where even a 10% discount can erase most of the profit per unit.
Does this work across Etsy, Shopify, eBay, and TikTok Shop?
Yes — select a platform preset to auto-fill typical fee rates, or enter your own. The discount math (sale price, fees on sale price, break-even, extra units) applies the same way regardless of platform; only the fee percentages differ.