How do you calculate a discount for e-commerce?

Discount Amount = Original Price × (Discount % ÷ 100). Sale Price = Original Price − Discount Amount. For example, a $80 product with 25% off: Discount = $80 × 0.25 = $20. Sale Price = $80 − $20 = $60.

What discount percentage is most effective for e-commerce?

Research shows 20–30% discounts drive the highest conversion rates without destroying margins. Discounts below 10% are often ignored. Discounts above 50% can signal low quality. The "magic" numbers are 20%, 25%, and 30% — they feel significant without alarming customers.

How do you calculate the minimum discount without losing money?

Minimum viable discount = 1 − (COGS ÷ Original Price). If your product costs $30 to make and sells for $80, your maximum discount is 1 − (30/80) = 62.5%. Any discount above 62.5% means selling below cost. Most businesses target keeping at least 20–30% gross margin after discounting.

What is the difference between a discount and a markdown?

A discount is a temporary price reduction (sale, coupon, promo code). A markdown is a permanent price reduction, often used to clear slow-moving inventory. Discounts are marketing tools; markdowns are inventory management tools. Both affect gross margin differently.

E-commerce Pricing

Discount Calculator for E-commerce: Pricing Strategy, Margins & Promo Math

Discounts drive sales — but the wrong discount strategy destroys your margins. This guide shows you how to calculate the real impact of discounts on your e-commerce profitability, find your minimum viable discount, and design promotions that boost revenue without killing your bottom line.

E-commerce Discount & Margin Calculator

Original Price ($)

Discount (%)

Product Cost / COGS ($)

Sale Price

$67.49

You Save

$22.50

Margin Before

68.9%

Margin After

58.5%

Gross profit before: $61.99

Gross profit after: $39.49

Max discount (break-even): 68.9%

Margin impact: −10.4pp

Full Discount Calculator

Discount Impact on Margin ($89.99 product, $28 COGS)

Discount	Sale Price	Gross Profit	Margin	Assessment
0%	$89.99	$61.99	68.9%	Healthy
10%	$80.99	$52.99	65.4%	Healthy
15%	$76.49	$48.49	63.4%	Healthy
20%	$71.99	$43.99	61.1%	Healthy
25%	$67.49	$39.49	58.5%	Healthy
30%	$62.99	$34.99	55.6%	Healthy
40%	$53.99	$25.99	48.1%	Healthy
50%	$44.99	$16.99	37.8%	Healthy
69%	$27.90	$-0.10	-0.4%	Loss