Discount Floor Calculator
Before you run a sale or accept a haggling customer, see exactly how much you can discount before each sale stops being profitable. Enter your retail price and loaded cost to find your discount floor.
Discount floor
Fixed business costs you have not entered here are not captured by this calculator.
The formula
Your break-even price is where profit hits zero after costs and fees. The discount floor is how far your retail price can fall before reaching it. Profit at each discount level is the discounted price minus your loaded cost and the fees on that discounted price.
Worked example
Retail $60, loaded cost $25, 6.5% fee + $0.30 fixed. Break-even = $27.06. Max discount before break-even = 54.9%. At 10% off: profit = $25.19. At 30% off: profit = $13.97.
Related calculators
Frequently asked questions
How much can I discount my products?⌄
Up to your discount floor — the point where the discounted price equals your break-even. Beyond that, every sale loses money. This calculator shows that point and the profit you'd keep at 10%, 20% and 30% off.
Why does my profit drop so fast when I discount?⌄
Because your costs don't fall with the price, a moderate discount can take a much larger bite out of your profit than you might expect.
Should I ever sell below break-even?⌄
Only deliberately — for example to clear dead stock that's costing you storage. Otherwise, discounting below break-even means paying to give your work away.