Educational only: Business decision support, not accounting, tax or legal advice.
Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Businesses considering a discount, promotion or negotiated price reduction.
Outputs
Discounted unit profit, scenario gross profit and the units needed to recover the baseline result.
Start here
Enter the current price, unit cost and sales volume, then test the proposed discount.
Use a different tool when: Do not use this to set a price for a target gross margin; use Target Margin & Pricing Planner for that decision. Use this tool to find whether added volume can recover profit after a discount.
Price & margin
Discount Profit Impact: discounted unit profit
Discounted unit profit, scenario gross profit and the units needed to recover the baseline result.
Amounts use the same currency as your inputs. No currency conversion is performed.
Discount scenario
Compare the gross profit from your current price and volume with a proposed discount.
Your numbers stay in this browser
Price per unit before discount.
Variable cost that changes with each unit sold.
Units sold in the comparison period.
Percentage taken off the current ex-indirect tax price.
Your volume scenario after the discount.
Discount profit impact
Gross profit comparison, excluding indirect tax.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
The marker identifies your entered discount; nearby points show how gross profit changes before assuming extra volume.
Scenario gross profit
- Baseline gross profit
- 4,000.00
| Discount rate (%) | Scenario gross profit |
|---|---|
| 5% | 4,550.00 |
| 10% (current) | 3,900.00 |
| 15% | 3,250.00 |
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Proposed discount3,900.00Baseline
Discount 5 points lower4,550.00650.00
Discount 5 points higher3,250.00-650.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Minimum whole units to meet or exceed baseline profit
Mathematical units required
baseline gross profit ÷ discounted unit gross profit133.33 units/periodOperational whole-unit threshold
round mathematical units upward134 units/periodResult134
Whole units in the same planning period as the baseline volume. Rounded upward so the operational threshold does not understate profit. Unavailable when discounted price is at or below unit cost.
Discount recovery formulas →Inputs used by these formula steps
- Mathematical units requiredBaseline Gross Profit
- 4,000
- Mathematical units requiredDiscounted Price Ex indirect tax
- 90
- Mathematical units requiredUnit Cost Ex indirect tax
- 60
- Operational whole-unit thresholdMathematical Units
- 133.33
Required volume increase
Mathematical units required
baseline gross profit ÷ discounted unit gross profit133.33 units/periodRequired volume increase
required mathematical units ÷ baseline units − 133.33%Result33.3%
Compared with baseline units in the same planning period. Displayed to two percentage decimal places. Unavailable when discounted price is at or below unit cost.
Required volume formula →Inputs used by these formula steps
- Mathematical units requiredBaseline Gross Profit
- 4,000
- Mathematical units requiredDiscounted Price Ex indirect tax
- 90
- Mathematical units requiredUnit Cost Ex indirect tax
- 60
- Required volume increaseRequired Units
- 133.33
- Required volume increaseBaseline Units
- 100
Scenario gross profit
Discounted price
current price × (1 − discount rate)90 per unit ex indirect taxScenario gross profit
(discounted price − unit cost) × expected units3,900 per period ex indirect taxResult3,900.00
Gross profit excluding indirect tax for expected units in the selected period. Displayed to the nearest cent; the engine retains full precision.
Scenario gross-profit formula →Inputs used by these formula steps
- Discounted pricePrice Ex indirect tax
- 100
- Discounted priceDiscount Rate
- 0.1
- Scenario gross profitDiscounted Price Ex indirect tax
- 90
- Scenario gross profitUnit Cost Ex indirect tax
- 60
- Scenario gross profitExpected Units
- 130
Gross-profit change versus baseline
Baseline gross profit
(current price − unit cost) × baseline units4,000 per period ex indirect taxScenario gross profit
(discounted price − unit cost) × expected units3,900 per period ex indirect taxGross-profit change
scenario gross profit − baseline gross profit-0.03 % of baselineResult-2.5%
Scenario gross-profit change divided by baseline gross profit. Displayed to two percentage decimal places.
Gross-profit comparison formula →Inputs used by these formula steps
- Baseline gross profitPrice Ex indirect tax
- 100
- Baseline gross profitUnit Cost Ex indirect tax
- 60
- Baseline gross profitBaseline Units
- 100
- Scenario gross profitDiscounted Price Ex indirect tax
- 90
- Scenario gross profitUnit Cost Ex indirect tax
- 60
- Scenario gross profitExpected Units
- 130
- Gross-profit changeScenario Gross Profit
- 3,900
- Gross-profit changeBaseline Gross Profit
- 4,000
Discounted unit margin
Discounted price
current price × (1 − discount rate)90 per unit ex indirect taxDiscounted unit margin
(discounted price − unit cost) ÷ discounted price33.33%Result33.3%
Unit gross profit divided by discounted ex-indirect tax price. Displayed to two percentage decimal places.
Discounted unit-margin formula →Inputs used by these formula steps
- Discounted pricePrice Ex indirect tax
- 100
- Discounted priceDiscount Rate
- 0.1
- Discounted unit marginDiscounted Price Ex indirect tax
- 90
- Discounted unit marginUnit Cost Ex indirect tax
- 60
Discounted price excluding indirect tax
Discounted price
current price × (1 − discount rate)90 per unit ex indirect taxResult90.00
Per unit, excluding indirect tax. Displayed to the nearest cent; the engine retains full precision.
Discounted price formula →Inputs used by these formula steps
- Discounted pricePrice Ex indirect tax
- 100
- Discounted priceDiscount Rate
- 0.1
Inputs used
- Current price, excluding indirect tax
- 100.00
- Unit cost, excluding indirect tax
- 60.00
- Baseline units
- 100
- Proposed discount
- 10%
- Expected units after discount
- 130
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| baselineUnits | Units sold in the comparison period. | whole product units/comparison period | 1 to 10000000 | Required | 100 |
| discountRate | Percentage taken off the current ex-indirect tax price. | proportion of current price discounted | 0 to 0.95 | Required | 0.1 |
| expectedUnits | Your volume scenario after the discount. | whole product units/comparison period | 0 to 10000000 | Required | 130 |
| priceExGst | Price per unit before discount. | currency units/product unit, ex indirect tax | 0.01 to 10000000 | Required | 100 |
| unitCostExGst | Variable cost that changes with each unit sold. | currency units/product unit, ex indirect tax | 0.01 to 10000000 | Required | 60 |
Discount Profit Impact: discounted unit profit
Use the recovery-volume result to judge the commercial burden of a discount, not as a forecast that demand will appear.
Formula summary
- Primary formula
- required units = baseline gross profit ÷ discounted unit gross profit
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Act on the result
Set a maximum discount or minimum order condition that keeps the required recovery volume realistic for the campaign period.
Stress-test the decision
Test a lower sales response and include fulfilment or service costs that may rise when discounted volume increases.
When this estimate can be misleading
- This is a gross-profit view, not net profit or cash flow.
- It assumes unit cost stays constant as volume changes.
- Demand response is your scenario, not a forecast or recommendation.
- Use the recovery-volume result to judge the commercial burden of a discount, not as a forecast that demand will appear.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- How Much Extra Volume Recovers a Discount?
Compare contribution before and after a discount and calculate the whole-unit sales increase needed to recover the baseline amount.
Read guide - Discount, Bundle or Added Value?
Compare three offer structures on one contribution and incremental-cost boundary without promising demand or a universal winner.
Read guide
Frequently asked questions
How do I find whether added volume can recover profit after a discount?
Set a maximum discount or minimum order condition that keeps the required recovery volume realistic for the campaign period.
Does Margin101 store my numbers?
Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Does this predict demand after a discount?
No. Expected units are your scenario, not a forecast.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.