Discount Profit Calculator
If you offer a discount, how much gross profit will you make on each order? Enter your regular selling price, product cost and discount. The calculator shows the amount and gross margin, then compares other discounts using the same price and cost.
Calculate Profit After Discount
How to use the discount profit calculator
Enter the full selling price and what the product costs you per order, including supplier shipping. Choose Percent off or Amount off and enter the discount. Click Calculate. If you change a number, click Calculate again; Reset restores the example.
The main result is gross profit or gross loss per discounted order, followed by gross margin. The comparison table keeps your full price and product cost unchanged while testing other percentage discounts. It includes your chosen offer, including an amount-off offer, and recalculates after you click Calculate.
Discount profit and margin formulas
- Discounted selling price: For a percentage offer, full price × (1 − discount ÷ 100), rounded to the nearest cent. For an amount-off offer, full price − discount amount.
- Gross profit per order = discounted selling price − product cost. A negative result is a gross loss.
- Gross margin = gross profit ÷ discounted selling price × 100. The margin can be negative when you sell below product cost. If the rounded selling price is zero, margin is shown as n/a because a percentage cannot be calculated from a zero sale price.
Gross profit here subtracts product cost, including any supplier shipping you entered. It does not subtract advertising, payment fees, returns, taxes or other business expenses. It therefore does not tell you your final net profit.
Worked example
This table starts with the calculator’s example values. Enter your own price, cost and discount, then click Calculate to replace every figure with your numbers.
| Measure | Full price | With 20% off |
|---|---|---|
| Full selling price | 50.00 | 50.00 |
| Product cost per order | 20.00 | 20.00 |
| Discount | None | 20% off |
| Discount amount | 0.00 | 10.00 |
| Customer pays | 50.00 | 40.00 |
| Gross profit or loss per order | 30.00 | 20.00 |
| Gross margin | 60.0% | 50.0% |
Compare the full-price and discounted columns to see how your unchanged product cost affects gross profit. Gross margin divides each column’s gross profit by what the customer pays. The discounted column should match the main result and your selected row in the comparison table above.
How to read the result
A positive gross profit means the discounted sale covers the product cost you entered. It does not show whether enough remains after ads, fees and other expenses. A gross loss means the discounted selling price is below product cost; selling more of that offer increases the gross loss unless something else changes.
This calculator looks at one order. To find how many discounted orders you would need to match your current monthly gross profit, use the separate Discount Break-Even Calculator.
Discount profit FAQ
Is gross margin the same as gross profit?
No. Gross profit is the amount left after product cost. Gross margin expresses that amount as a percentage of what the customer pays. The worked-example table shows both for your entered offer.
What if I offer a fixed amount off?
Choose Amount off and enter the amount taken from the full selling price. The calculator subtracts it before working out gross profit and margin. The amount must be less than the full selling price.
Does this tell me the biggest discount I can afford?
It shows when product cost alone is or is not covered. Your maximum workable discount also depends on advertising, fees, returns and the profit you need to keep. Check those costs separately before setting an offer.
Related calculators
- Discount Break-Even Calculator: estimate the monthly order target needed to offset a discount.
- Stacked Discount Calculator: work out the final price when a sale and promo code combine.
- BOGO-F Profit Calculator: check gross profit when an order includes free items.
- Bundle Discount Calculator: check gross profit from selling products together.
Estimates for planning only, based on the numbers you enter. This is not financial advice.