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Multi-Buy Promotion Effective Unit Price

For multi-buy offers such as “3 for the price of 2”, computes the effective unit price, the true discount rate, total spend and savings.

Version 2

Things to keep in mind:

  • “Cheapest item free” rules for mixed prices are not modelled; one unit price applies.
  • For the seller’s margin impact use the promotional price and margin tool.
  • VAT and shipping effects are not included.

Calculator

Promotion

TRY

Regular selling price of one item (TRY).

Units you pay for. For “3 for the price of 2” enter 2; for “2 for 1” enter 1.

Extra units received free. For “3 for 2” enter 1; for “2 for 1” enter 1.

Quantity

How many times the promotion is used (sets bought).

After the first calculation, the result updates automatically when you change a value.

Result

Enter the values and press Calculate to see the result here.

About this tool

In multi-buy promotions the label price stays the same; the discount comes from free units. This tool shows the real effect on unit price and discount rate, and can be adapted to any structure such as “2 for 1”, “3 for 2” or “4 for 3”.

Formulas

  • Items received = paid units + free units
  • Effective unit price = unit price × paid units ÷ items received
  • Effective discount (%) = free units ÷ items received × 100
  • Total spend = unit price × paid units × number of sets
  • Savings = unit price × free units × number of sets

Amounts and the rate are rounded HALF_UP to 2 decimals.

Inputs: “3 for 2”: paid 2, free 1; “2 for 1”: paid 1, free 1; “4 for 3”: paid 3, free 1.

Example 1: a 100 TRY item, 3 for 2: you pay 200 TRY for 3 items; effective unit price 66.67 TRY; discount 33.33%; savings 100.00 TRY.

Example 2: a 19.99 TRY item, 4 for 3, 2 sets: effective 14.99 TRY, discount 25%, spend 119.94 TRY, savings 39.98 TRY, 8 items in total.

Example 3: an 80 TRY item, 2 for 1: effective unit price 40.00 TRY, discount 50%.

How to read the result: the effective unit price is what you really pay per item under the promotion; compare it with the label price to see its value. The effective discount rate depends only on the ratio of free units to total units, not on the price. Total spend and total savings show the cash outlay for your chosen number of sets and the list-price value of the free items.

How to use

  1. Enter the regular unit price.
  2. Enter paid units and free units (2 and 1 for 3 for 2).
  3. Enter how many sets are bought.
  4. Press Calculate.

Notes

Amounts are rounded HALF_UP to 2 decimals. Effective unit price is total paid divided by items received. Savings is the list-price value of the free units. A single item type at one price is assumed.

Sources

Frequently asked questions

4 questions
  1. The free unit is one third of the items: 33.33%. The effective unit price is two thirds of list.

Next step

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