PALLAS / CALCULATOR
Discount Impact Calculator
See how a discount changes the selling price, gross profit per unit and gross margin. If the discounted unit still makes money, the calculator also shows how much extra volume you would need to keep total gross profit unchanged.
INPUT
Enter values
Method & formula
A discount reduces the selling price while the unit cost stays the same. That cuts gross profit per unit. When both the original and discounted unit still have positive gross profit, the calculator works out how many discounted units are needed to match the gross profit from the original price.
- Discounted price = original price × (1 − discount %)
- Gross profit per unit = selling price − unit cost
- Gross margin % = gross profit ÷ selling price × 100
- Required unit multiplier = original gross profit ÷ discounted gross profit
- Additional volume % = (required unit multiplier − 1) × 100
Example
If an item sells for 100 and costs 60, gross profit is 40. A 10% discount takes the price to 90 and gross profit to 30. You would need about 1.33 times as many units — roughly 33.3% more — to make the same total gross profit.
FAQ
Why can the required volume be unavailable?
If the original sale does not produce positive gross profit, there is no positive baseline to preserve. If the discounted sale makes zero or negative gross profit, selling more units cannot recover that original profit under the same cost assumptions.
Does this tell me whether I should run the discount?
No. It shows the effect on unit economics. Demand, acquisition cost, fixed costs, tax, returns, stock constraints and the wider commercial objective still matter.
Does the calculation assume unit cost changes with volume?
No. The unit cost stays fixed at the figure you enter. If your cost changes at a different volume, run the calculation again with the revised cost.