Discount Impact Calculator
Before running a sale, find out if the discount will actually increase your revenue. See exactly how much more volume you need to break even on any promotion.
Enter Your Numbers
Discount Impact
Discounted Price
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Revenue Loss (same vol.)
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Revenue Break-Even
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Volume Increase Needed
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The Math Behind Discounting
Why Most Discounts Lose Money
A 20% discount does not require 20% more sales to break even. It requires 25% more sales. A 33% discount requires 50% more volume. A 50% discount requires double the volume. The math is counterintuitive, which is why so many merchants run unprofitable sales. When you factor in cost of goods, the volume increase required for profit break-even is even higher.
When Discounts Make Sense
Discounts can be strategic when clearing excess inventory (where holding cost exceeds the discount cost), acquiring new customers who will buy at full price later, or competing during peak shopping events when competitors are also discounting. The key is running the numbers first, not after the sale ends.
Alternatives to Blanket Discounts
Instead of site-wide discounts, consider bundle pricing, tiered discounts (buy more, save more), limited-time flash sales on specific SKUs, or free shipping thresholds. These approaches can boost average order value without training customers to wait for sales.
Know When Competitors Discount First
Instead of guessing when to run sales, let Price Patrol alert you when competitors drop their prices. Respond strategically instead of reactively with real-time price monitoring.
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