What this calculator tells you
A discount is not a neutral price change. It directly reduces the contribution from every order, so the business may need substantially more volume to keep the same profit.
When to use it
Use it before running a seasonal promotion, a coupon campaign, or a marketplace-wide sale.
Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.
Comparing discount revenue with original profit hides how many extra orders are needed to recover the price reduction.
Frequently asked questions
Why does a small discount require so many extra orders?
Profit per order is usually much smaller than revenue. A 10 percent discount can remove a large share of the remaining profit.
Should I include ad spend?
Yes, if the promotion requires incremental advertising. Put it in other costs for a more complete view.
What is the safest way to test a discount?
Compare the profit at current volume with the required volume at the discounted price, then test with a small traffic segment before a full launch.