Discount / Margin Calculator
Find out the real margin at various discount levels. Ideal for sales campaigns – know how much you really keep and what ROAS you need.
Frequently Asked Questions (FAQ)
Why does giving a 20% discount not mean losing only 20% of profit?
Because you give the discount from revenue, but pay it from profit. If your margin is 30%, and you give a 15% discount, you have sacrificed half of your profit (50%), not just 15%. This concept of "Discount vs Margin Impact" is the most common cause of e-shop bankruptcy.
What extra costs (fees) should I include?
Never forget payment gateway fees (approx. 1-2% of price with VAT), packaging material (box, tape), and any cost for subsidized shipping. If you sell for $20 and these costs are $3, your real margin is completely different.
What is Break-even ROAS with a discount?
When you lower the price with a discount, you lower your margin. Lower margin means you need higher ROAS (return) from advertising to not be at a loss. With a 50% discount, your break-even ROAS often doubles.
Why it matters
Understanding the relationship between discount and margin is a question of survival. Many e-shops give
discounts "randomly" or copy competitors ("everyone has Black Friday -20%"), without calculating that with their margin such a
discount will reduce profit by 80%.
This calculator protects you from the "discount trap". Always calculate the impact on margin first, then
push banners.