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Discount profitability
Calculator.

We compare full-price and discounted contribution with separate ad budgets.

Your assumptions

Illustrative defaults only, never Further or client figures. Currency is AUD, excluding GST. Enter 20 for 20%. Optional fields can stay blank or zero. Your inputs stay on this page.

Scenario result

Contribution change from discount

A$0.00

Discounted unit price
A$80.00
Full-price contribution after ads
A$6,000.00
Discounted contribution after ads
A$6,000.00
Units to match full-price contribution
150

The discount adds A$0 in contribution at A$80.00, so the extra volume more than covers the margin given up. Worth checking it isn't just pulling forward orders you'd have had anyway at full price.

The maths

Full-price contribution = (100 - (30 + 10)) × 100 - 0 = 6,000 AUD.

Discounted price = 100 × (1 - 20%) = 80 AUD. Discounted contribution = (80 - 40) × 150 - 0 = 6,000 AUD.

Matching units = ceil(max(0, 6,000 + 0) / 40). The baseline contribution already deducts baseline ad spend.

Before you use it

Assumes the same unit variable costs in both scenarios. Include shipping, processing and returns in the variable-cost inputs where relevant. Sales shifted from other periods and fixed overheads are excluded.

This is a planning scenario, not a forecast or financial advice. Compare it with your actual order and customer records before changing spend.

Questions worth asking

What does the matching unit count mean?

It's the whole-number discounted units needed to match baseline contribution after baseline ads, while paying the discounted scenario's separate ad spend. A negative target requires zero units.

What if the discount leaves no unit contribution?

Matching units show N/A. If each extra unit contributes zero or a loss before ads, selling more units won't recover a positive contribution target.

Keep working through the numbers

Put the numbers to work.

We can look at the assumptions with you and decide what to test next.