Discount calculator with margin impact shown
Final price, stacked discounts and the real effect on margin
Final price
€80.00
Customer saving
€20.00
Real discount
20.0 %
Margin left
€20.00
Everything is computed in your browser. Nothing is stored.
A twenty per cent discount followed by a ten per cent one does not make thirty per cent, it makes twenty-eight. The mistake is common in promotions and it is paid for out of margin. This calculator gives the final price, the customer saving, the real compounded percentage, and above all what is left of your margin once the discount applies, which discount calculators almost always leave out.
How to use it
How it works
Enter the price and the discount
As a percentage or as an amount: both forms are accepted and converted into one another.
Add successive discounts
Each further discount applies to the already discounted price. The real compounded rate shows next to the naively added one, often very different.
Check the margin left
Enter the buying price and the calculator shows what the discount actually leaves, and flags crossing the break-even point.
Worth knowing
Four things to keep in mind
Discounts multiply, they do not add
Two twenty per cent discounts give thirty-six per cent in total, not forty. The gap works in your favour here, but it works against you on a single miscalculated discount.
A discount eats margin faster than you think
On an item at thirty per cent margin, a ten per cent discount on the selling price cuts roughly a third of the unit profit. The extra volume has to make up for that loss.
Selling at a loss is prohibited
Selling below the effective buying price is an offence in France, outside statutory sale periods and cases set out in law. The calculator flags crossing the line.
The reference price must be real
Showing a struck-through price never actually charged is a misleading commercial practice. The reference price is the one applied before the promotion, over a sufficient period.
FAQ
Frequently asked questions
Divide the saving by the original price, then multiply by a hundred. Twenty off an item at eighty is twenty-five per cent.
No, in most cases it does far worse. The buying price stays the same, so half the selling price disappears entirely from the margin, which can turn negative.
The percentage is identical either way. The margin left, on the other hand, has to be worked out net to mean anything.
The calculation is the same, but the analysis differs: a loyalty discount is amortised over the customer's future purchases, which the loyalty profitability calculator lets you estimate.
Also
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