How much discount can your margin take?
Enter price, product cost, shipping and discount. See what you keep per sale, how many more sales you need, and where you start losing money.
Example: at $39.90, $14.00 product cost, $4.50 shipping and 3% fees you keep $20.20 per sale without a discount and $10.53 with 25% off. You need 1.9× as many sales for the same profit.
US sellers leave VAT at 0. Etsy sellers: transaction + payment fees together are roughly 9–10%. Ads and returns not included.
Why 25% off often costs half your profit
The discount comes off the price, but product cost and shipping stay the same. With typical small-shop margins, a quarter off the price takes half or more of the profit per item. Black Friday pays off when you sell a lot more, when new customers come back, or when old stock has to go.
Three alternatives to a big discount
- Free shipping costs only shipping and often feels stronger than 10% off.
- Tiered discount (10% over $50, 20% over $100) raises order value.
- Free gift over a cart value costs the purchase price, not the retail price.
Everything in one kit for €19
Timeline Nov 13 – Dec 1, 40 subject lines, 6 ready-to-send emails, 15 Instagram captions, 12 banner lines, 8 discount ideas with margin calculator, 26-point checklist, 24 December posts. Instant access, copy buttons.
Get the kit · €19 What's insideFAQ
How much discount makes sense on Black Friday?
As much as your margin can carry. The calculator shows the maximum discount without a loss; usually much less is sensible because ads and returns come on top.
How many more sales do I need at 25% off?
With typical small-shop margins roughly twice as many. In the example ($39.90 price, $14 cost, $4.50 shipping) it's 1.9×.
Does it work for VAT-registered sellers?
Yes, enter your VAT rate if it's included in your price.
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