Coupon Profitability Calculator
Check whether a discount code still makes money: profit per redeemed order, total campaign profit and how many extra sales the coupon must drive to pay for itself.
How it works
Discounted price = price − discount · Coupon margin = discounted price − cost · Break-even multiple = full-price margin ÷ coupon margin
A coupon is only worth it if the extra volume outweighs the profit given away on each sale. Because the discount comes straight off your margin, a modest-looking percentage off can force a large jump in required sales just to stand still. The break-even multiple answers the key question: how many times more units the promotion must move than you would have sold at full price to keep total profit unchanged.
Worked example
A $40 product costing $24 makes $16 at full price. A 20% coupon drops the price to $32 and profit to $8 per order, so you must sell 16 ÷ 8 = 2× as many units to match full-price profit. Across 200 redemptions the coupon earns $1,600.
Frequently asked questions
How do I know if a discount is worth running?
Compare the extra sales you expect against the break-even multiple. If a coupon halves your per-unit profit you need to more than double volume just to break even; anything less means the promotion lost money versus selling fewer units at full price.
Why does a small percentage off hurt profit so much?
The discount is taken from your margin, not your cost. On a product with a 40% margin, a 20% price cut removes half the profit, because the discount is a much larger share of the margin than it is of the price.
Should I also account for customers who would have paid full price?
Ideally yes — if existing full-price buyers use the code, the coupon cannibalizes profit you already had. The strongest coupons target genuinely incremental sales (new customers, abandoned carts) rather than discounting purchases that would have happened anyway.
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Educational estimate, not financial advice. Fee rates and duties change — confirm current figures with the marketplace, carrier or customs authority.