How do you calculate the break-even volume after a discount?

Divide the discount by your margin minus the discount, with both as a share of the price. A 10% discount on a 40% margin needs 10 divided by 30, which is 33% more volume to earn the same total profit.

Why does a small discount need so much more volume?

The discount comes straight out of profit, not out of revenue. If your margin is 40% and you give 10%, a quarter of the profit on every sale disappears, so you need a third more sales to replace it.

What if the discount is bigger than my margin?

Then every extra sale loses money and no amount of volume recovers it. The tool says so instead of showing a number.

Does this include fixed costs or sales commission?

No. It uses the margin you enter, so include any cost that rises with each sale in that figure. Fixed costs do not change with volume and are left out on purpose.

Should I ever give a discount?

Sometimes, if you get something in return, such as a longer contract, a faster start or a reference. A discount given for nothing teaches the buyer that the first price was negotiable.

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Free Sales Discount Impact Calculator

Enter the price, your margin and the discount. See what the discount costs per sale and how much more you must sell to break even.

Your input

Price per sale What you charge before any discount.Gross margin Profit as a share of the price, before the discount.Discount asked for The percentage off the price.Deals per month How many you close at the full price.

Result

Extra volume to break even

33.3%

A 10% discount cuts profit per sale by 25%. You would need 33.3% more volume to earn the same profit, which is about 7 more deals a month.

Extra deals a month: 7
Profit per sale now: $400
Profit per sale after: $300
Profit lost per sale: 25%

The short answer

A discount impact calculator shows how much more a seller must sell to earn the same profit after cutting the price. Enter the price, your gross margin, the discount and your monthly deals, and this tool returns the profit lost per sale and the extra volume needed to break even. It is free.

Who it is for

Account executives and founders who are asked for a discount on a call, and managers who approve them.

Reviewed

Last reviewed 2026-10-09

Free
No sign-up
Runs in your browser

How it works

Enter your numbers

The price, your gross margin as a share of price, the discount you are being asked for and how many deals you close in a month.
Read the cost of saying yes

Profit per sale before and after, how much profit each sale loses and the extra volume that would win it back.
Decide what to trade

If the extra volume is out of reach, hold the price or trade the discount for a longer term or a faster start.

Frequently asked questions

Divide the discount by your margin minus the discount, with both as a share of the price. A 10% discount on a 40% margin needs 10 divided by 30, which is 33% more volume to earn the same total profit.
The discount comes straight out of profit, not out of revenue. If your margin is 40% and you give 10%, a quarter of the profit on every sale disappears, so you need a third more sales to replace it.
Then every extra sale loses money and no amount of volume recovers it. The tool says so instead of showing a number.
No. It uses the margin you enter, so include any cost that rises with each sale in that figure. Fixed costs do not change with volume and are left out on purpose.
Sometimes, if you get something in return, such as a longer contract, a faster start or a reference. A discount given for nothing teaches the buyer that the first price was negotiable.

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