Will a discount leave enough contribution?
A discount reduces the price, while product cost and most fulfillment costs stay the same. Percentage selling fees can fall with the price. This calculator compares both effects, then shows how many orders cover the fixed costs you enter.
Formula
Break-even orders = Fixed costs ÷ Contribution per order
Contribution per order = Realized price − Entered variable costs and fees
Use one product sold one unit per order, or a group of orders with stable average economics. Enter prices excluding sales tax, and use the same revenue basis for your percentage fee. If your marketplace charges on a different base, uses tiers or caps, or includes collected tax, use the relevant marketplace calculator to inspect those charges. This simple combined percentage is not a marketplace fee quote.
Keep per-order costs and period costs separate
Product cost includes the landed cost assigned to the sold item. Use the landed-cost tool to prepare that number. Fulfillment includes postage, packaging and other fulfillment costs paid per order. Other variable cost can include an entered advertising or return allowance; do not also put the same cost in fixed costs.
Fixed costs belong to the period you are planning, such as one month’s rent, software or salaries that do not change with each order in this scenario. Planned orders must cover that same period. The model holds costs and sales mix constant; higher volume can change capacity, fees, returns and ad costs.
Break-even orders, price and the discount limit
- Contribution per order = realized price − entered variable costs and fees.
- Break-even orders = fixed costs ÷ positive contribution per order, rounded up.
- Period result = planned orders × contribution per order − fixed costs.
- Orders to preserve contribution = planned orders × full-price contribution ÷ discounted contribution, rounded up.
The variable-cost price floor covers the costs of one order before period fixed costs. Its corresponding discount limit can leave zero contribution, so it is not a recommended promotion. The price needed at your planned order count also covers the entered fixed costs. Neither measure adds a profit target or income tax.
Example: a 20% discount needs 72 more orders
At $100 full price, $40 product cost, $10 fulfillment, and a 3% fee plus $0.30 per order, contribution is $46.70. A 20% discount lowers price to $80 and contribution to $27.30. With $1,000 period fixed costs, break-even volume rises from 22 to 37 orders.
| Measure | Full price | 20% discount |
|---|---|---|
| Price | $100 | $80 |
| Contribution per order | $46.70 | $27.30 |
| Break-even orders | 22 | 37 |
| Period result at 100 orders | $3,670 | $1,730 |
| Orders to preserve full-price contribution | 100 | 172 |
At 100 orders, the modeled period result falls from $3,670 to $1,730. You need 172 discounted orders to preserve the contribution from 100 full-price orders: 72 additional orders, or a 72% increase. This is a required volume under the assumptions, not a prediction that the discount will attract those orders.
In this example, the variable-cost price floor is $51.86. The maximum entered discount that still covers variable costs is 48.14%. At 100 orders, the minimum price covering the $1,000 fixed costs is $62.17. These thresholds use the rounding model below.
What if contribution is zero or negative?
If contribution is zero, selling more does not help cover positive fixed costs. If it is negative, more orders deepen the modeled loss. The calculator keeps the price and cost results visible while marking unavailable volume targets. Zero fixed costs can give a zero-order threshold; that does not make loss-making orders profitable. With zero planned orders, a price for covering fixed costs at that volume and a baseline order-increase percentage are unavailable.
Rounding and limits
Money and percentages accept two decimals. The model rounds a discounted price down to cents and the combined percentage fee up to cents, then adds the fixed per-order fee. It rounds required orders up to whole orders. Minimum prices and discount limits are checked against that same model. These conservative rules are planning assumptions; actual platforms may calculate their fees differently.
The displayed result subtracts only entered variable and fixed costs. It is not company net profit, a cash-flow forecast or an accounting entry. Mixed baskets, tax, financing, inventory timing and changing customer acquisition costs require separate analysis.
OpenStax’s break-even analysis supports the contribution and fixed-cost framework and explains its operating assumptions. Reviewed October 14, 2026. Discount and rounded-price comparisons follow the identities above.
Questions sellers ask
How many extra orders does a discount need?
Orders to preserve contribution = planned orders × full-price contribution ÷ discounted contribution, rounded up. In the example, a 20% discount needs 172 discounted orders to preserve the contribution from 100 full-price orders: 72 additional orders, or a 72% increase. This is a required volume under the assumptions, not a prediction that the discount will attract those orders.
Is the maximum discount a good discount to run?
No. The variable-cost price floor covers the costs of one order before period fixed costs. Its corresponding discount limit can leave zero contribution, so it is not a recommended promotion. Neither the floor nor the price needed at your planned order count adds a profit target or income tax.
What if contribution per order is zero or negative?
If contribution is zero, selling more does not help cover positive fixed costs. If it is negative, more orders deepen the modeled loss. The calculator keeps the price and cost results visible while marking unavailable volume targets.
Is the period result my net profit?
No. The displayed result subtracts only entered variable and fixed costs. It is not company net profit, a cash-flow forecast or an accounting entry. Mixed baskets, tax, financing, inventory timing and changing customer acquisition costs require separate analysis.
Use the right next tool
Use the margin and markup calculator for target gross-margin pricing, the Stripe fee calculator for a payment-cost scenario, and the ROAS calculator for ad-spend limits. Review Taxomate’s supported accounting workflows when you need to record actual marketplace activity.
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