Discount Profit Calculator
A discount can increase sales while quietly destroying profit. Test your sale before you run it and see how many extra units you would need to sell to make the same profit.
Discount type
Your numbers stay in your browser. Handmade Price Calculator does not upload or store your product costs.
Before discount
$18.73
41.6% margin
After discount
$10.58
29.4% margin
To make the same total profit with this discount, you need to sell 1.8× more units.
This calculator provides estimates only. Fees, taxes, and marketplace rules may change. Always verify current platform fees and consult a qualified professional for business, tax, or accounting advice.
Why discounts are dangerous for small sellers
For a large retailer with a 60% margin, a 20% discount still leaves 40% profit. For a handmade seller with a 22% margin, a 20% discount leaves a 2% margin — barely enough to cover a single shipping mistake.
Discounts feel productive because they can increase sales volume. But if the margin is already thin, more volume at a lower price means more work for less money. Always test before you run a sale.
Frequently asked questions
It depends on your current margin. If your margin is 25% and you offer 20% off, your new margin drops to about 7%. To earn the same total profit, you would need to sell roughly 3.5 times more units. This calculator shows that multiplier automatically.
Only if your margin is high enough. If you normally keep 30% profit, a 20% discount cuts your profit by about two-thirds. If your margin is below 25%, a 20% discount may leave you with no profit at all.
Free shipping can help conversion, but only if your price absorbs the shipping cost. If you are currently charging the customer for shipping, offering free shipping reduces your revenue by that amount. Test it with this calculator first.
Buy One Get One 50% off means the customer pays full price for one item and half price for the second. Your average revenue per unit drops to 75% of full price. For low-margin products, this type of deal can be unprofitable very quickly.