MarginKoala

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.

units

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.
MarginKoalaKoala's Professional Opinion

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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.