Sales Pricing & Discount Impact Calculator
Analyse the impact of sales discounts on selling price, contribution, profit and sales volume. Calculate how many additional units you need to sell to recover the contribution lost due to a price reduction.
1. Product Pricing Details
Enter the relevant cost per unit, including variable costs attributable to each unit sold.
Enter the discount as a percentage of the original selling price.
Enter the number of units sold at the original selling price before the discount scenario.
2. Optional Sales Scenario
Optional. Enter the expected volume after offering the discount to estimate the resulting contribution.
Calculate
Reset
Practical Example
A business sells a product for ₹1,000 per unit. Its variable cost is ₹600 per unit, and it currently sells 1,000 units. Management is considering a 10% discount.
- Cost per unit: ₹600
- Original selling price: ₹1,000
- Discount: 10%
- Current sales volume: 1,000 units
Step 1: Calculate the Discounted Selling Price
₹1,000 × (1 − 10%) = ₹900 per unit.
Step 2: Compare Contribution per Unit
Original contribution: ₹1,000 − ₹600 = ₹400.
Contribution after discount: ₹900 − ₹600 = ₹300.
Step 3: Calculate the Required Sales Volume
Original total contribution: ₹400 × 1,000 = ₹4,00,000.
Required volume: ₹4,00,000 ÷ ₹300 = approximately 1,333.33 units.
The business therefore needs to sell approximately 33.33% more units to recover the original total contribution.
How to Use the Calculator
- Enter the unit cost, original selling price, discount percentage and current sales volume.
- Optionally enter the expected sales volume after the discount.
- Select Calculate to view the pricing and contribution analysis.
- Select Reset to clear all inputs and results.
Decision guidance: Before offering a discount, estimate whether the additional sales volume is realistic and whether production, inventory and distribution capacity can support it. A discount that increases revenue does not necessarily increase contribution or profit.