Pricing
Discount Profit Calculator
Enter the original price, the discount, your costs and your fees. The calculator shows the sale price, the profit at both prices, and how much profit the discount gives away.
A discount cuts more than the price: fees fall slightly because they are charged on the lower price, but your product and shipping costs do not fall at all. That is why a 20% discount can remove far more than 20% of your profit.
Formula
Sale price = original price × (1 − discount %). Profit at either price = price − product cost − shipping cost − (price × marketplace fee %) − (price × payment fee % + fixed fee).
How it works
Enter the full price and the discount to get the sale price. The calculator works out profit at both prices with the same costs and fees, so the gap between them is exactly what the discount costs you on one sale.
Worked example
Original price $50.00 with a 20% discount gives a sale price of $40.00. Costs are $14.00 product and $5.00 shipping; fees are 13% marketplace and 2.9% + $0.30 payment. Profit at full price: $50.00 − $14.00 − $5.00 − $6.50 − $1.75 = $22.75. Profit at sale price: $40.00 − $14.00 − $5.00 − $5.20 − $1.46 = $14.34. The discount costs $22.75 − $14.34 = $8.41 of profit per sale.
FAQs
Why does a 20% discount cost more than 20% of my profit?
Because only the price falls. Your product cost and shipping cost stay the same, so the whole $10 price cut comes out of profit, partly offset by slightly lower fees. On thin margins a small discount can wipe out profit entirely.
Should fees be calculated on the sale price or the original price?
On the sale price — the amount the buyer actually pays. Marketplaces charge their fee on the completed sale amount, which is the discounted price.
How deep a discount can I afford?
Work backwards: the lowest sale price that still leaves your minimum profit. Enter different discount percentages here until the sale-price profit reaches that floor, and never go below it for a promotion.
Do discounts ever pay for themselves?
Only if the extra volume they create outweighs the profit lost on every sale, including sales you would have made anyway at full price. Compare the total profit, not just the number of orders.
What about a coupon that the marketplace funds?
If the marketplace pays the discount, your sale price for fee purposes may still change. Check how that marketplace treats funded promotions before entering the numbers.
Stand: October 2026. Pure arithmetic — no platform rate is used; enter your own figures.
Disclaimer: Results are estimates and general information only, not tax or financial advice. Your actual fees, shipping costs and profit depend on your marketplace account, category, shipping service and buyer location. Check the figures that apply to you before pricing a listing.
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