Free calculator · Retail, grocery and restaurants
Enter your normal selling price, what the item costs you and the discount you are thinking of. See the sale price, the profit you give away and the extra sales you would need to break even on the offer.
Price after discount = price × (1 − discount ÷ 100).
Profit per unit = price − cost, before and after the discount.
Extra sales needed = (profit before ÷ profit after − 1) × 100.
An item sells for ₹1,000 and costs ₹700, so you make ₹300 on each. At 10% off it sells for ₹900 and you make ₹200. To earn the same total profit you must sell ₹300 ÷ ₹200 = 1.5 times as many: 50% more units.
The discount comes entirely out of your profit, not out of the price as a whole. A 10% price cut on an item with a 30% margin removes a third of the profit on each sale.
When it brings in sales you would not otherwise make, clears stock that would otherwise expire or go out of season, or brings in customers who buy other things at full price.
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