🏷️ Margin With Discount Calculator
See how offering a discount affects your real profit margin by entering your cost, list price, and the discount percentage you plan to offer.
What this calculator shows
Offering a discount reduces your selling price, which shrinks your profit margin more than most people expect. This calculator shows your real profit margin after a discount is applied, compared to your original undiscounted margin.
How it’s calculated
The discounted selling price is your list price reduced by the discount percentage. Profit is that discounted price minus your cost, and margin percentage is profit divided by the discounted selling price. This is compared against the margin you would have earned at full list price, so you can see exactly how many margin points the discount costs you.
- A discount has a bigger relative impact on margin the closer your normal margin already is to your cost.
- This calculator assumes the discount applies to the full list price and does not include other selling costs.
This tool is for general business planning and educational purposes only.