Small-business finance
Discount profit recovery
Find extra volume needed to preserve contribution after a discount.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
new units=old units*(old price-variable)/(discounted price-variable).
Fixed costs unchanged. This preserves total contribution, not revenue. Unit volume response is not forecast. Whole units round up.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Original unit price (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for original unit price. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Proposed price discount (%): Proposed reduction in selling price, not desired gross margin.
- Variable cost per unit (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for variable cost per unit. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Original sales volume (units): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for original sales volume. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Discounted selling price is $90.00 for the illustrative inputs below.
Example inputs
- Original unit price: $100.00
- Proposed price discount: 10.00 %
- Variable cost per unit: $60.00
- Original sales volume: 100.00 units
- Discounted selling price
- $90.00
- Exact units to preserve contribution
- 133.33 units
- Whole units needed
- 134 units
- Required volume increase
- 33.33 %
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Find extra volume needed to preserve contribution after a discount.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.