This discount and promotion profit calculator measures whether a reduced selling price remains profitable after product, fulfillment, packaging, platform, payment and advertising costs.
How it works
The calculator applies the entered discount to the original price, calculates percentage fees on the promotional price, subtracts fixed and variable unit costs, then compares promotional profit with full-price profit.
The formula
The maximum discount shown includes the current advertising cost. If the full-price economics are already below break-even, the maximum safe discount is shown as zero.
Worked example
With an original price of 150 and a 20% discount, the promotional price is 120. Using the default costs, profit is 13.60 per unit, maximum CPA is 33.60 and the maximum break-even discount is about 29.49%.
This is a planning estimate. Returns, taxes, coupon stacking, marketplace-specific fee rules and promotion-funded subsidies are not included unless you enter them in the applicable costs.
Frequently asked questions
Why do percentage fees fall when the product is discounted?
The model calculates platform and payment percentage fees from the promotional selling price. Actual providers may use different fee bases or minimum charges.
What does maximum discount before break-even mean?
It is the largest discount from the original price that still covers entered unit costs, percentage fees and the current advertising cost.