Net Price After Discount Calculator
See the net selling price after a discount, the profit and margin that survive it, and the deepest discount you can give before losing money.
How it works
Net price = list × (1 − discount%) · Profit = net − cost · Margin % = profit ÷ net × 100 · Max discount % = (1 − cost ÷ list) × 100
A discount is subtracted from the price, so it comes straight out of profit while the cost stays fixed. The extra insight here is the break-even discount: the point where the net price exactly equals your cost. Discount beyond it and every sale loses money, no matter how much volume it drives.
Worked example
On a $100 list price at 20% off, the net price is $80. With a $55 cost, profit is $25 and the margin is 25 ÷ 80 = 31.25%. The most you could discount is (1 − 55 ÷ 100) = 45%, where the $55 price just covers cost.
Frequently asked questions
What is the break-even discount?
It is the discount that brings the net price down to exactly your unit cost, leaving zero profit. Any deeper discount sells below cost. It equals (1 − cost ÷ list price) × 100.
Why does the margin fall faster than the discount?
The discount reduces price but not cost, so the profit shrinks while the cost base stays put. A 20% discount can erase a much larger share of profit than 20% because profit is only a slice of the price to begin with.
Is the net price the same as the sale price?
Yes — net price here means the amount actually charged after the discount, before any tax. Tax, if applicable, is normally added on top of this net price.
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Educational estimate, not financial advice.