Discount Profit Calculator
See the discounted price, unit profit, margin, and total profit.
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How to calculate profit after a discount
This discount profit calculator shows discounted price, unit profit, gross margin, and total profit. It is useful for restaurants, retail, ecommerce, promotions, clearance sales, and pricing tests.
Discounts can increase demand but directly reduce unit profit. Evaluate discounted margin, sales volume lift, and total profit instead of revenue alone.
Formula or logic
- Discounted price = Original price × (1 - Discount rate)
- Unit profit = Discounted price - Unit cost
- Total profit = Unit profit × Quantity sold
- Gross margin = Unit profit ÷ Discounted price
Example
If the original price is 100, cost is 60, and the discount is 20%, the sale price is 80 and unit profit is only 20. If sales volume does not rise enough, total profit may fall.
Common questions
Is higher revenue after a discount always good?
No. Revenue can rise while profit falls if the margin becomes too thin.
Is discount rate the same as gross margin?
No. Discount rate is the price reduction, while gross margin is profit as a share of selling price.
Can this help with clearance sales?
Yes. It helps estimate whether each discount level still has profit or an acceptable loss.