This free online sales calculator will show you how important it is to understand what a discount means to the profit of your business. Try the following example in the free sales calculator below.
- Lets suppose you buy a product wholesale for $1000 – enter that in the ‘cost before discount’ field.
- Next enter 30% markup in the ‘Base markup’ field – note that’s MARKUP 3rd field down, not margin which is the 2nd field.
- You should have a base revenue of $1300. If you scroll down and look at the ‘Profit’ field it should now say $300.
- Now enter 10% in the in ‘Discount’ field.
- Your profit field will now say $170 as opposed to $300!
There goes almost half your profit!! (I was never that good at maths:) You would now have to sell almost twice as much product to make the same margin. Be extremely aware of just what impact giving a discount will do each time you do it.
Free Sales Calculator
Margin With Discount Calculator
