Product discounts
Pricing strategy discount calculator
Running a sale? Use our discount calculator to ensure your profit margins are aligned with your revenue strategy and goals.
Or, if you need help creating a promotion or discount, start with this guide for D2C brands.
Choose a type of discount, plug in the cost of the item and the markup, then experiment with different discount amounts and see how they affect your sale price, profit, and gross margin.
| Sale Price | |
|---|---|
| Original | $0.00 |
| Discounted | $0.00 |
| Profit | |
|---|---|
| Original | $0.00 |
| Discounted | $0.00 |
| Gross Margin | |
|---|---|
| Original | 0% |
| Discounted | 0% |
Enter your monthly price, annual price, and annual cost of service (COS) to compare how an annual plan impacts revenue, profit, and gross margin versus monthly billing.
| Yearly Revenue | |
|---|---|
| Monthly | $0.00 |
| Annual | $0.00 |
| Profit | |
|---|---|
| Monthly | $0.00 |
| Annual | $0.00 |
| Gross Margin | |
|---|---|
| Monthly | 0% |
| Annual | 0% |
ℹ️ Prices rounded to nearest cent. Percentages rounded to nearest whole number.
Definition of terms
- Annual cost of service
- The yearly expense to support and deliver the service to a customer
- Annual price
- How much the customer pays upfront for a full year of service
- Cost of item
- How much it costs to manufacture the product
- Discount
- How much you’re planning to discount the product or service
- Gross margin
- The higher the number, the more profitable your business
- Markup
- The amount of overhead and profit added to the production cost
- Monthly price
- The standard rate a customer pays for a single month
- Profit
- Your total revenue minus the cost of the item or service
- Sale price
- How much the customer is paying for the product
- Savings percentage
- The total discount a customer receives for committing to a full year
- Yearly profit
- Your annual revenue minus the cost of serving the customer
- Yearly revenue
- The total amount of money collected from a customer in one year
Additional tips
If you can’t afford to discount your products, explore alternative deals such as free shipping, extra loyalty points, or small freebies added to every order.
Be careful about discounting popular products — you want to ensure you have enough inventory on hand to last the duration of the sale.
Keep your discounting strategy as simple as possible. Nobody likes having to calculate prices in their head!
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