Work out discount impact on profit instantly with clear inputs, formula shown and shareable results.
A discount comes straight off contribution, so the volume uplift required to hold profit flat is far larger than the discount itself. On a 36% margin a 10% discount needs roughly 38% more units — the arithmetic most promotional plans skip.
Break-even volume
Volume needed = Current volume x Original contribution / Discounted contribution
Discounted contribution
CM after = List x (1 - Discount %) - Variable cost
Because the discount is a percentage of price but the loss is a percentage of the much smaller contribution figure. Thin margins amplify this dramatically.
Yes, when it unlocks genuinely incremental volume, clears ageing stock whose holding cost is real, or wins a customer whose lifetime value exceeds the giveaway.