Discount Break-Even Calculator
See how many extra sales a discount needs to earn back the contribution you give away. Test your expected sales lift before running the offer.
Your pricing scenario
What this change needs
36 additional sales (36% above current volume).
Your expected sales leave less contribution than the baseline. This is before monthly overhead, owner pay and taxes.
The required sales fit your entered capacity.
| Measure | Current | Proposed |
|---|---|---|
| Completed sales | 100 | 120 |
| Revenue | $10,000.00 | $10,800.00 |
| Contribution | $3,700.00 | $3,276.00 |
Contribution reaches zero at a 38.14% discount under these costs. Stay below this boundary; it does not cover monthly overhead.
See the calculation
Contribution per sale = price × (1 − fee rate) − variable cost.
Current contribution = $37.00 × 100 = $3,700.00.
New contribution = $90.00 × (1 − 3%) − $60.00 = $27.30.
Required sales = round $3,700.00 ÷ $27.30 upward to 136 whole sales.
Expected sales are rounded down to whole completed sales. Calculations use unrounded values; displayed money rounds to two decimals.
Try a discount with a clear recovery target
In the starting example, a $100 sale with $60 variable cost and a 3% fee contributes $37. A 10% discount reduces contribution to $27.30. Preserving $3,700 therefore needs 136 whole sales, a 36% increase. A 20% sales lift delivers only $3,276 of contribution.
Assumptions and limits
This compares a consistent product or service with unchanged percentage fees. The discount model keeps variable cost unchanged; the price-increase model can use your revised cost. Monthly overhead stays the same. Contribution is money available to fund overhead and owner pay; it is not net profit. Extra staff, advertising or equipment commitments can change the result. Customer response and demand are your assumptions.
Capacity checks flag a limit; they do not cap the expected-sales projection or prove demand. Use a separate scenario for different products, costs or customer groups.
Frequently asked questions
Does more revenue mean more profit?
No. Compare contribution after variable costs and fees, then deduct monthly overhead and owner pay. Higher sales can still leave less money.
Where should fixed costs go?
Keep committed monthly rent, payroll and other overhead out of per-sale cost. They cancel in this comparison only when unchanged. Use the full business calculator for a monthly funding target.
What if the result cannot be recovered?
A zero or negative new contribution cannot fund the positive baseline at any volume. Revise the price, discount or cost assumptions.
Discount break-even worked examples · Run a full business break-even plan · Compare saved plans with Pro
Method reviewed October 6, 2026. Planning estimates based on your inputs. Report a calculation issue.