Free tool
Discount and Margin Calculator
Margin after discount is discounted revenue minus cost, divided by discounted revenue. Enter each line with its list price, quantity, unit cost and discount, and this calculator shows the margin per line and for the whole quote. It also shows the largest discount each line can take before it drops below the target margin you set.
Free to use. Runs in your browser: nothing you enter is sent to our servers.
Line items
Enter each line the way it appears on the quote. The two rows below are examples, replace them with your own numbers.
A $ discount comes off the whole line (list price x quantity), not off each unit.
Optional. Applied to the total after line discounts. Leave at 0 for none.
The lowest gross margin you are willing to accept. Lines under it are flagged.
Margin after discount
Enter a list price and a quantity above zero on at least one line to see the margin.
Quote revenue
Total cost
Quote margin
Against your target
| Line | Discount | Revenue | Cost | Margin | Margin % | Status | Max discount at target |
|---|---|---|---|---|---|---|---|
| Subtotal before quote discount | |||||||
| Whole-quote discount | |||||||
| Quote total |
Results depend entirely on the numbers you enter. Check them against your own contracts and accounting.
How this was calculated
- Line revenue is list price times quantity, less the line discount. A % discount multiplies the line by (1 minus the discount). A $ discount is subtracted from the line once.
- Line cost is unit cost times quantity.
- Line margin % is (line revenue minus line cost) divided by line revenue, times 100. If a line has no revenue, the margin shows as n/a because you cannot divide by zero.
- Quote revenue is the sum of line revenue times (1 minus the whole-quote discount).
- Quote margin % is (quote revenue minus the sum of line cost) divided by quote revenue, times 100.
- Max discount at target is 1 minus (unit cost divided by (list price times (1 minus target margin))). It is the largest % you can take off list price on that line and still hit the target. It shows "none" when the line misses the target even at full list price.
- A line is flagged Below target when its margin % is lower than the target margin you entered. The line check uses line discounts only. The quote total row also includes the whole-quote discount.
- Margin here means gross margin on the numbers you typed. Taxes, commissions, payment fees and overhead are not included unless you put them in unit cost.
Build this as a live quote and present it on your next call.
Start a free 30-day trialWhen to use this calculator
Use it before a pricing call, when you need to know how much room each line has. The same discount does not cost every line the same amount of margin. A line with a high unit cost can fall below target on a discount that a low-cost line absorbs with room to spare.
Enter the lines the way they appear on the quote, set the lowest margin you will accept, and read the last column of the table. That figure is the most you can take off list price on that line and still hit your target. If it says none, the line misses the target before any discount is applied.
From the calculator to the live quote
Knowing your limits ahead of time matters most when you price in front of the buyer. In forquotez, the rep presents the quote live on the call and can discount a single line, by a percent or a dollar amount, while the buyer watches the total update. A manager PIN can gate discounts and locked minimums, so a deeper cut needs a second person to approve it.
For the reasoning behind discounting line by line, read per-line discounts and margin. To see what the buyer sees, open the interactive sample quote.
Frequently asked questions
How do you calculate margin after a discount?
Take the discount off the list price to get revenue, subtract cost from revenue, then divide the result by revenue. Example: an item listed at $100 with a $60 cost, sold at 10 percent off, brings in $90, leaves $30 of margin, and has a margin of 33.3 percent.
What is the difference between margin and markup?
Margin divides profit by the selling price. Markup divides profit by cost. An item that costs $60 and sells for $100 has a 40 percent margin and a 66.7 percent markup. This calculator reports margin.
How is the maximum discount worked out?
It is 1 minus (unit cost divided by (list price times (1 minus target margin))). With a $100 list price, a $45 unit cost and a 40 percent target, the answer is 25 percent, because at $75 the margin is exactly 40 percent.
Why does a line show none for the maximum discount?
The line is below your target margin even at full list price, so no discount keeps it on target. You would need a higher price, a lower cost, or a lower target for that line.
Does the whole-quote discount change the line margins?
No. Each line row shows margin after its own line discount. The whole-quote discount is applied to the sum of the lines, and the quote total row shows the margin after it.
Is my data stored anywhere?
The calculation runs in your browser and the tool makes no network requests. Your inputs are kept in the page address so you can bookmark or share the result, which means anyone you send the link to can see them.