Promotional Price and Contribution Calculator
Calculates the sale price, unit contribution and margin after a campaign discount, and shows how much the discount cuts contribution, the maximum discount rate and the units needed for the same total contribution.
Things to keep in mind:
- Unit cost should include per-unit variable costs such as commission and shipping; otherwise contribution is overstated.
- VAT, tax, fixed costs and demand elasticity are ignored; units needed is no guarantee that sales will rise.
- If unit contribution is 0 or negative, units needed shows 0, meaning the target cannot be reached.
Calculator
Result
Enter the values and press Calculate to see the result here.
About this tool
A discount lowers the price, but unit cost stays the same, so profit falls by more than the discount suggests. This tool shows the effect on contribution and how much sales must grow.
Formulas
- Campaign price = list × (1 − discount ÷ 100)
- Unit contribution = price − unit cost (old: list − cost)
- Change in unit contribution = new unit contribution − old unit contribution
- Margin (%) = contribution ÷ price × 100 (0 if the price is 0)
- Maximum discount (%) = (list − cost) ÷ list × 100; beyond it you lose money per unit
- Units needed = old contribution × units ÷ new unit contribution (rounded up); 0 if the new unit contribution is 0 or negative
Amounts are rounded HALF_UP to 2 decimals; margins use unrounded values.
Example 1: cost 60, list 100 TRY, 20% off, 5 units: campaign price 80.00 TRY; contribution falls from 40.00 to 20.00 TRY (change −20.00 TRY); margin from 40% to 25%; total campaign contribution 100.00 TRY; maximum discount 40%. To earn the same total contribution (200 TRY) you must sell 10 units, i.e. double.
Example 2 — a discount below cost: cost 90, list 100 TRY, 20% off: campaign price 80.00 TRY, new unit contribution −10.00 TRY, new margin −12.50%, maximum discount 10%; units needed shows 0, meaning the target cannot be reached.
Example 3: cost 33.33, list 49.99 TRY, 15% off, 7 units: campaign price 42.49 TRY, new unit contribution 9.16 TRY, margin 21.56%, total contribution 64.13 TRY, units needed 13.
How to read the result: the change in unit contribution shows how much profit each sale loses to the discount. The maximum discount rate is the limit at which unit contribution reaches zero; your campaign rate should stay below it. Units needed is the sales level required to match the original total contribution. If the new unit contribution is zero or negative it shows 0 and the target cannot be reached.
How to use
- Enter the unit cost and list price on the same VAT basis.
- Enter the campaign discount rate.
- Enter the units sold at the normal price.
- Press Calculate.
Notes
Amounts are rounded HALF_UP to 2 decimals; margins use unrounded values. Contribution is before fixed costs and tax. Units needed is old total contribution divided by the new unit contribution, rounded up.
Sources
Frequently asked questions
Cost stays fixed, so the whole discount comes out of contribution. A 20% discount halves contribution on a 40%-margin item.
The rate at which unit contribution reaches zero: (list − cost) ÷ list. Beyond it is a loss.
The units you must sell at the campaign price to match the original total contribution; 10 instead of 5 in the example.
Add it to unit cost, or use the marketplace tools separately.
Contribution divided by the campaign price: 20 ÷ 80 = 25%.
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