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Maximum Discount Calculator with Fees & Profit
Find the biggest discount that still covers costs, percentage fees and your target profit per order.
How the calculation works
Minimum selling price = (product cost + shipping + advertising + other costs + target profit) ÷ (1 − fee rate). Round the minimum price up to cents. Maximum discount is the difference between the original price and that safe minimum.
Worked example
For a $50 original price, $20 product cost, $3 shipping, $2 advertising, a 10% fee and a $10 profit target, the safe minimum price is $38.89. The largest discount is $11.11, or 22.22%; the resulting profit is at least $10.
Assumptions and limits
Fees are charged on the discounted sale price. Fixed per-order fees belong in other costs. Costs and conversion are assumed unchanged by the discount.
If the original price is already below the required price, no discount meets the target. The result shows the required price increase instead.
Returns, taxes, fixed overhead and tiered fees are excluded. Use the return-adjusted tool to inspect refund assumptions separately.
Your numbers are processed in this browser. Changing currency does not convert them. These are estimates from your assumptions; check actual costs and settlement statements.
Frequently asked questions
How much can I discount without missing my profit target?
The tool first finds the sale price that covers fixed order costs, percentage fees and your profit target. It rounds that price up to cents and subtracts it from your original price. A zero profit target tests the modeled break-even price before excluded costs.
Why are fees calculated on the discounted price?
This model assumes the percentage fee is charged on the amount the customer pays after discount. If your provider charges a fixed fee as well, include it in other costs. Fees charged on a different base require a different calculation.
Why does the result show a price increase instead of a discount?
Your original price is below the price needed to meet the selected profit target. Under these assumptions no discount is feasible. Raising the price, reducing costs or changing the target are separate scenarios you can compare.
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