Product Pricing Calculator
Estimate product price from cost, midpoint range, or channel tiers.
Open toolOne Study decision-preparation calculator
See how a discount changes unit margin and the volume needed to recover it.
Calculate marked-down price, remaining unit margin, profit lost per unit, break-even discount, and additional unit sales required to match full-price gross profit.
Calculator
Compare the discount with cost and realistic unit volume.
Use the current unit cost and a baseline full-price volume for the same item and period. Expected discounted units provide a direct comparison with the volume needed to recover the original gross profit.
Reading the result
Focus on gross profit dollars, not sales volume alone.
The marked-down gross profit per unit determines how much more volume is required to match the gross profit from the baseline full-price plan. The expected-volume comparison shows whether the entered promotion assumption clears that threshold.
Before you act
A promotion can change demand, returns, and future price expectations.
The estimate does not forecast demand lift, customer acquisition, repeat purchase, returns, basket effects, channel funding, inventory aging, competitor response, or the long-term effect of discounting on price perception.
FAQ
Questions this tool helps frame.
Why can a small discount require a large sales increase?
The discount comes out of gross profit after unit cost. When the starting margin is modest, the remaining profit per unit can fall much faster than the selling price.
What happens when the discounted price reaches unit cost?
There is no positive unit gross profit left to recover the baseline gross profit, so additional volume alone cannot close the gap.
What is the break-even discount?
It is the discount that reduces selling price to unit cost before other variable selling expenses.
Should marketing or fulfillment costs be added to unit cost?
Include any cost that changes with each sale when you want the margin comparison to reflect that expense.
Working notes
Keep the formula with the assumptions.
- Units Needed After Markdown = Original Total Gross Profit / Marked-Down Gross Profit per UnitThe comparison holds baseline full-price units constant, applies the discount to selling price, and calculates the units required to earn the same gross profit dollars.
- Update the result when the record changesSupplier terms, sales, stock, costs, timing, and channel deductions can change the result materially.
- Continue the operating reviewTCKRprice, Scaffold, VelocityMarketing
- Check the connected numbersProduct Pricing Calculator, Sell-Through & Weeks-of-Supply Calculator, Wholesale, Distributor & Retail Margin Calculator.
- Prepare the non-financial questionsCampaign Readiness Assessment.
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