Price cut sales increase calculator
A price cut eats into profit per unit, so you need to sell more to make up for it. Enter price, cost and the cut to see the lift required.
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How to use it
- Enter current price, variable cost per unit and price cut.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Unit profit before = price - cost. After = price × (1 - cut ÷ 100) - cost. Required increase = (before ÷ after - 1) × 100.
Example
Inputs: Current price = 100, Variable cost per unit = 60, Price cut = 10 %. Result: Required increase in units: 33.33%; New price: 90.00; Unit profit before: 40.00.
Limits and caveats
- Looks at gross profit only and assumes fixed costs stay the same.
- Ignores knock-on effects such as extra sales of other products or new customers.
Questions about this tool
Why is the required increase bigger than the cut?
The cut comes straight out of profit. A 10% cut on a 40% margin product removes a quarter of unit profit.
When does a discount lose money?
When volume does not rise by at least this figure, or the new price falls below cost.
Does it work for White Friday sales?
Yes. Enter the planned discount to see how much sales must grow before you launch the offer.