Discount Break-Even Calculator
How many monthly orders would you need to earn the same gross profit after offering a discount?
Enter your selling price, product cost, discount and current monthly orders. The calculator shows the minimum order target and compares other discounts using your numbers.
Calculate order numbers to break even
How to use the calculator
Enter your full selling price and product cost per order, including supplier shipping. Add the percentage discount you plan to offer and the number of orders you currently get each month. Click Calculate. If you change an input, click Calculate again; Reset restores the example.
The main answer is the minimum whole number of discounted orders per month needed to match the gross profit from your current full-price orders. The table below it keeps your price, cost and current order count the same, and recalculates that target at other discount percentages. Your chosen discount is marked your offer.
Discount break-even formula
- Gross profit per order now = full selling price − product cost.
- Discounted selling price = full selling price × (1 − discount ÷ 100), rounded to the nearest cent.
- Gross profit per discounted order = discounted selling price − product cost.
- Current monthly gross profit = current monthly orders × gross profit per order now.
- Orders needed = current monthly gross profit ÷ gross profit per discounted order, rounded up to the next whole order.
The formula needs positive gross profit at both prices. If the full-price order already makes no gross profit, there is no profitable baseline to match. If a discounted order makes zero gross profit or a loss, no number of discounted orders can match a positive baseline.
Example calculation
Suppose a product sells for 50.00, costs 20.00 including supplier shipping, and gets 100 orders per month. You are considering 20% off.
| Measure | Amount |
|---|---|
| Full selling price | 50.00 |
| Product cost per order | 20.00 |
| Current monthly orders | 100 |
| Discount | 20% |
| Discounted selling price | 40.00 |
| Gross profit per order now | 30.00 |
| Gross profit per discounted order | 20.00 |
| Current monthly gross profit | 3,000.00 |
| Discounted orders needed | 150 |
| Extra orders needed | 50 |
At 100 orders, the discounted offer would make 2,000.00 in monthly gross profit. To match the original 3,000.00, it needs 150 discounted orders: 3,000.00 ÷ 20.00. That is 50 more orders, a 50% increase. The comparison table in the calculator uses your entered numbers at each discount; it is not fixed to this example.
What the target does and does not tell you
The order target shows what volume would preserve gross profit if every order is sold at the discount and product cost per order stays the same. It does not predict whether the offer will bring in those orders. If some extra orders merely replace full-price orders you would otherwise have received, the real effect can differ. Gross profit excludes advertising, payment fees, returns, taxes and other business expenses. Subtract those separately when judging the offer.
Discount break-even FAQ
Why can a 20% discount require 50% more orders?
In the worked example, the 10.00 discount reduces gross profit per order from 30.00 to 20.00. Each discounted order earns two-thirds as much gross profit, so you need 150 orders instead of 100 to make the same 3,000.00.
What if I enter a 0% discount?
With a positive full-price gross profit, the target equals your current monthly order count. No extra orders are needed.
Can a deeper discount be recovered by enough sales?
Only if each discounted order still makes positive gross profit. When the discounted price is at or below product cost, additional orders cannot recover the lost gross profit in this calculation.
Related calculators
- Bundle discount calculator: check gross profit when you sell items together.
- Stacked discount calculator: see the final price when a sale and promo code combine.
- BOGO profit calculator: check gross profit when the customer receives free items.
Estimates for planning only, based on the numbers you enter. This is not financial advice.