This calculator shows what a discount code really costs you, in profit and in extra orders.
You need 57% more orders to come out even. Codes often go to people who were going to buy anyway, so check how many orders are new.
More orders needed to earn the same profit: +57%
A 20 percent discount sounds like 20 percent off revenue, but it comes out of your margin, which is a much smaller number. The calculator shows how much profit each discounted order keeps and how many more orders the code has to bring in to make up the difference.
Use it before a sale, a launch code or an influencer code goes live.
Every number this calculator uses, with an example.
Your revenue divided by your number of orders.
$30,000 from 400 orders is a $75 AOV.
Your price minus product cost, divided by price, as a percent.
A $60 product that costs $24 has a 60 percent gross margin.
What one order earns you after product cost. A discount comes straight out of this number.
What it costs you to make or buy what goes in the box, including getting it to your warehouse.
Each order earns AOV × gross margin today.
The discount comes straight out of margin, because your costs stay the same: AOV × (margin − discount).
Divide the old profit by the new one: margin ÷ (margin − discount). Anything above 1 is the extra volume the code has to bring in.
Because it comes out of margin, not revenue. On a product with a 50 percent margin, 20 percent off removes 40 percent of the profit on each order, so you need about two-thirds more orders to make the same amount.
Often, when the free shipping threshold sits above your current average order value, because it can raise order size. Run both through your numbers before deciding.
Your price minus product cost, divided by price. If a $60 product costs you $24 to make and land, the gross margin is 60 percent.
The growth plan does it from the outside, with no logins, and shows what we would fix first and what it would cost.