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What does this discount do to contribution?

Enter your numbers below. Get the answer first, then Koala's next move.

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Numbers to enter
Enter what you charge, the direct cost that comes with each sale, your normal sales volume and the discount you are considering.

Koala compares the promotion with today's contribution at the same volume, then shows the exact catch-up volume where one exists.

Include costs that rise because the sale happens — product cost, fulfilment and per-sale fees.

Use the same period you want to judge the promotion over.

Discount
Koala's Calculated Result
The contribution effect of the discount before fixed costs, plus the exact sales-volume catch-up boundary where one exists.

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Definition and method

What this calculator answers

See how much contribution the discount gives up at the same sales volume, then the exact catch-up volume where one exists.

Contribution before and after the discount

For each unit, subtract the direct per-unit cost entered from the current price and from the discounted price. Multiply each per-unit contribution by the same sales volume to isolate the effect of the discount before fixed costs.

Worked example: your figures

The interactive result above is the worked example. Change any input and the same deterministic engine recomputes the answer; this page does not insert a generic example business or silently treat example values as a benchmark.

  • No market benchmark or outcome is silently inserted by this page.

What should I check next?

Frequently asked questions

How does a percent discount change profit?

This calculator measures contribution before fixed costs, not final net profit. A percent discount reduces price by that percentage; with direct per-unit cost held constant, the same dollar amount reduces contribution per unit. The calculator then compares total contribution at the sales volume you enter.

Discount Profit

What is a discount floor?

The calculator can show the mathematical discount boundary where the discounted price reaches the direct per-unit cost entered and contribution falls to zero. That is a zero-contribution boundary, not a recommended discount size; deeper discounts produce negative direct contribution on the entered cost basis.

Discount Profit

Should I include expected units?

Use your normal unit volume to show the same-volume effect, then compare the exact catch-up volume with a demand scenario you can defend. MarginKoala does not assume a discount attracts more buyers or that extra volume occurs.

Discount Profit

When is a discount a loss-leader?

If the discounted sale has negative direct contribution, the promotion loses money on the cost basis entered. Whether you intentionally accept that as a loss leader depends on separately evidenced downstream contribution, such as repeat purchases or other sales, and this calculator does not assume that future upside.

Discount Profit

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.