Small-Business Math · Bonus

The Real Cost of a Discount

A discount comes almost entirely out of your profit. See the new contribution and the extra volume a markdown really needs.

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Enter your price, cost and the discount, then press Calculate.
From the book — Bonus. A discount comes straight out of your contribution — your cost doesn't fall when your price does. To match the old profit you need old ÷ new contribution times the sales. Never discount below your cost.

Illustrative arithmetic from the bonus chapter. Everything stays in your browser — no sign-up, nothing stored.