How this calculator works
A wholesale discount that increases order volume can still erode unit profit. This calculator works backward from landed unit cost and gross margin, then shows how volume-based discounts affect the achieved margin and total order contribution. It also rounds requested quantities to your pack multiple and minimum order quantity.
What the calculation does
Calculate the undiscounted base price from unit cost and target gross margin, rounding the quoted price up to a cent. Apply the chosen percentage discount when adjusted order quantity reaches a tier threshold. Compute gross margin and contribution at the selected tier, excluding tax and additional overhead.
Important limitations
Model assumes costs are in one currency per unit and discounts apply to the entire qualifying order. It does not include taxes, freight, payment fees, customer returns, fixed overhead or negotiated price protections.
Common questions
What is the difference between margin and markup?
Margin divides unit profit by the selling price; markup divides it by unit cost.
Why was my requested order quantity increased?
Orders are rounded up to the minimum order quantity and then to complete case packs.
Can deeper discounts lose money?
Yes. Check the achieved margin and profit per unit at each tier before quoting a customer.