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.

  1. Lets suppose you buy a product wholesale for $1000 – enter that in the ‘cost before discount’ field.
  2. Next enter 30% markup in the ‘Base markup’ field – note that’s MARKUP 3rd field down, not margin which is the 2nd field.
  3. You should have a base revenue of $1300. If you scroll down and look at the ‘Profit’ field it should now say $300.
  4. Now enter 10% in the in ‘Discount’ field.
  5. 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