Is this calculator specific to Shopify?

The math is ecommerce-specific and works especially well for Shopify stores because it includes the costs Shopify merchants usually need to model: COGS, payment fees, shipping, returns, ad spend, inventory, conversion rate, or repeat purchases depending on the tool.

Should I use gross margin or contribution margin?

Use contribution margin when you are making advertising, discount, or growth decisions. Gross margin is useful, but contribution margin is stricter because it accounts for variable costs like payment fees, fulfillment, shipping, returns, and app costs.

Why does the tool use default values?

Defaults make the calculator useful immediately and show the shape of the result before you enter your own numbers. Replace them with your store's actual numbers before making a final decision.

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Discount Impact Calculator

See whether a sale or discount still leaves enough profit after fees, returns, shipping, fulfillment, and ad cost.

Discount impact calculator

See what a sale does to real contribution profit, not just revenue. Useful before approving a 10%, 20%, or BFCM discount.

Current price

Discount

COGS

Monthly orders

Shipping cost

Fulfillment

Payment fee

Fixed payment fee

Return rate

Cost per return

Ad cost per order

App cost per order

Discounted price

$64.00

Profit before

$27.12

Profit after

$11.58

Monthly profit change

-$7,770

Max break-even discount

34.9%

You need 134% more orders to make the same profit at this discount.

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About this tool

What this free tool calculates

Use this before approving a promotion. It shows profit before and after the discount, monthly profit change, and the extra order volume needed to break even.

How to use the result

The calculator compares original contribution profit against discounted contribution profit, then multiplies the difference by monthly order volume.

If the required order lift is unrealistic, try a bundle, a higher free shipping threshold, or a retention campaign instead of a blanket discount.

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Why the calculator stays input-driven

This free ecommerce tool does not guess demand, scrape competitors, or invent benchmarks. Change the numbers to match your store, then use the result to decide whether a product, campaign, discount, or inventory move is worth doing.

Frequently Asked Questions

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