Consumer Psychology

Discount Break-Even Calculator

How much extra volume a discount must generate just to break even — the math most "SALE" signs never did.

Inputs

  • Contribution margin
  • Planned discount

How to use this calculator

  1. Enter your contribution margin percentage and the discount you plan to run.
  2. The tool shows how much more volume you must sell just to stand still.
  3. Discounts are far more expensive than they look. This reveals the real hurdle before you promote.

What each term means

Discount break-even
The extra sales volume needed to offset the margin a discount gives up.
Contribution margin
The profit share of each sale before fixed costs.
Margin erosion
How a price cut shrinks profit far faster than it grows volume.

Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.

Consumer Psychology