Shopify Discount Profit Calculator
See how a discount affects your profit margin on Shopify and calculate the maximum discount you can offer without losing money.
By Marginory team · Online sellers with hands-on experience across Etsy, Shopify & POD
Shopify plan
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Before vs. after discount
Original price$59.99
Sale price (−20%)$47.99
Profit at original price$34.49 (57.5%)
Profit at sale price$22.73 (47.4%)
Profit lost per order$11.76
Maximum safe discount
Max discount amount$35.19
Max discount %58.7%
(Beyond this = loss per order)
How this is calculated
Sale price = Original price × (1 − 20%)
Profit = Sale price − (sale price × fees%) − $0.30 − Product cost − Shipping
Max discount = Original price − Break-even price
Assumptions:
- Using Shopify Payments
- Discount code (not automatic discount) — Shopify still charges fees on original price for some coupon types. This calculator uses the actual sale price as the fee base.
Source: https://www.shopify.com/pricing · Last verified: 2025-06-01
Frequently Asked Questions
How do discount codes affect Shopify profit?
Discount codes reduce your sale price, which reduces revenue and gross profit directly. Shopify's payment processing fee also decreases proportionally (since it's % of sale), but this partial savings rarely offsets the margin loss. Always calculate net profit at the discounted price before running a sale.
What is the maximum discount I can offer on Shopify?
Max discount = 1 − (Break-even price / Original price). Break-even price = (Product cost + $0.30) / (1 − payment rate). For a $15 cost product on Basic with Shopify Payments: break-even = $15.30 / 0.98 = $15.61. On a $30 product: max discount = 1 − 15.61/30 = 47.9%.