This discount calculator shows the sale price and gross-margin effect of discounting a physical product. It applies a percentage reduction to the regular price, then compares the discounted price with the product’s variable unit cost.
The output helps merchants check whether a planned promotion remains profitable before publishing it. It does not model changes in sales volume, customer acquisition, or fixed overhead.
1. Enter regular price. Use values from the same product, SKU group, and reporting period.
2. Enter discount rate. Use values from the same product, SKU group, and reporting period.
3. Enter variable unit cost. Use values from the same product, SKU group, and reporting period.
4. Review the result. The calculator updates automatically as inputs change. Use Reset to restore the example values.
The displayed value summarizes discounted selling price using the inputs entered above.
Use consistent units and matching reporting periods. Results are estimates for planning and review.
Given: a $120 regular price, 20% discount, and $62 variable unit cost.
Calculation: sale price = $120 × 0.80 = $96. Gross profit = $96 − $62 = $34. Margin = 35.42%.
Result: The promotion price is $96.00 with a 35.42% gross margin.
No. Discount is measured from regular price; margin is measured from the final selling price.
Yes, enter the effective total discount after applying the actual stacking rules.
Gross profit and margin become negative, indicating a per-unit loss before overhead.
No. Use pre-tax prices and costs unless your reporting requires another consistent basis.
Test higher discount rates until the resulting margin reaches your minimum acceptable level.