Break-even discount calculator
Result
At 15.0% off the order keeps $9.83 instead of $15.36. To earn the same per visitor, the discount has to bring 56.3% more buyers.
Full price
Revenue $40.00 to contribution margin $15.36 (38.4%)
Revenue
$40.00
Cost of goods
−$12.00
Pick and pack
−$1.18
Packaging
−$0.50
Shipping label
−$7.50
Card fee per order
−$0.30
Refunds
−$2.00
Card processing
−$1.16
Contribution margin
$15.36
2 declared kinds cost nothing on this option
| Step | Grain | Amount |
|---|---|---|
| Revenue | – | $40.00 |
| Cost of goods | per unit | −$12.00 |
| Pick and pack | per order | −$1.18 |
| Packaging | per parcel | −$0.50 |
| Shipping label | per parcel | −$7.50 |
| Card fee per order | per order | −$0.30 |
| Refunds | percent | −$2.00 |
| Card processing | percent | −$1.16 |
| Contribution margin | – | $15.36 |
| 2 kinds costing nothing | – | $0.00 |
15.0% off
Revenue $34.00 to contribution margin $9.83 (28.9%)
Revenue
$34.00
Cost of goods
−$12.00
Pick and pack
−$1.18
Packaging
−$0.50
Shipping label
−$7.50
Card fee per order
−$0.30
Refunds
−$1.70
Card processing
−$0.99
Contribution margin
$9.83
2 declared kinds cost nothing on this option
| Step | Grain | Amount |
|---|---|---|
| Revenue | – | $34.00 |
| Cost of goods | per unit | −$12.00 |
| Pick and pack | per order | −$1.18 |
| Packaging | per parcel | −$0.50 |
| Shipping label | per parcel | −$7.50 |
| Card fee per order | per order | −$0.30 |
| Refunds | percent | −$1.70 |
| Card processing | percent | −$0.99 |
| Contribution margin | – | $9.83 |
| 2 kinds costing nothing | – | $0.00 |
| Per order | Full price | 15.0% off |
|---|---|---|
| Revenue | $40.00 | $34.00 |
| Cost of goods | −$12.00 | −$12.00 |
| Pick and pack | −$1.18 | −$1.18 |
| Packaging | −$0.50 | −$0.50 |
| Shipping label | −$7.50 | −$7.50 |
| Card fee per order | −$0.30 | −$0.30 |
| Refunds | −$2.00 | −$1.70 |
| Card processing | −$1.16 | −$0.99 |
| Contribution margin | $15.36 | $9.83 |
| Margin % | 38.4% | 28.9% |
- Profit per visitor at full price
- $0.46
- At the discount, at the same conversion
- $0.29
- Conversion lift to break even
- +56.3%
| Discount | Price | Margin per order | Lift to break even |
|---|---|---|---|
| 5.0% | $38.00 | $13.52 | +13.6% |
| 10.0% | $36.00 | $11.68 | +31.5% |
| 15.0% | $34.00 | $9.83 | +56.3% |
| 20.0% | $32.00 | $7.99 | +92.2% |
| 25.0% | $30.00 | $6.15 | +149.8% |
| 30.0% | $28.00 | $4.31 | +256.4% |
| 40.0% | $24.00 | $0.62 | +2377.4% |
| 50.0% | $20.00 | −$3.06 | no lift is enough |
Margin at 15.0% off $9.83. Lift to break even +56.3%