Profit Drivers · Run Your Own Numbers
See How Price Increases and Discounts Move Your Net Profit
Enter your annual numbers, then move the drivers. Each scenario changes one driver and holds everything else at your current numbers. Nothing you enter is saved or sent anywhere.
Start Here
Enter Your Current Numbers
Use last year or a trailing twelve months. Round numbers work fine.
Then
Move the Drivers
Drag a slider or type a percentage. Results update as you go.
Look Here
Read Your Results
Pick your business type to set margin targets. Each scenario card rates your gross margin and net margin against those targets, so you can see which moves get you to a healthy number. The two purple cards show what a discount really costs and what a price increase is really worth.
Margin targets
Healthy gross margin
50% and up
Watch between 30% and 50%. Needs attention under 30%.
Healthy net margin
10% and up
Watch between 5% and 10%. Needs attention under 5%.
Net profit and margins by scenario
HealthyAt or above targetWatchBelow targetNeeds AttentionUnder the watch rangeTargets are general rules of thumb. Your industry and business model can shift them.
What it means
The Cost of Discounting
Set a discount above 0% to see what it costs you.
This card shows how much more you would need to sell to earn back the profit a discount gives away.
Price Versus Volume
Set a price change to compare it with volume.
This card shows how much volume it takes to match the profit from a price change.
Go Deeper
Review the Full P&L Comparison
See every line item side by side to trace how each change flows from revenue down to net profit.
Swipe the table sideways to see every scenario.
| Line item | Current | Price | Discount | Volume | COGS | All Changes |
|---|
Your numbers stay in your browser and reset when you leave the page.
Understand the Math
How Each Driver Works
Price
A price increase raises revenue on every sale. Cost of goods sold and variable costs stay the same, so the full increase reaches net profit.
Discount
A discount lowers revenue without lowering any cost. Every dollar of discount comes out of net profit.
Volume
More volume raises revenue, cost of goods sold, and variable costs together. Fixed costs hold steady, so profit grows by the contribution margin on each added sale.
COGS
Lowering the cost to deliver what you sell raises gross profit on every sale. Revenue stays the same, so the savings reach net profit.
Profit Driver Questions
Why does a small discount cut net profit so much?
A discount lowers revenue without lowering any of your costs. Every dollar of discount comes out of net profit. At a 20% net profit margin, a 5% discount on all sales cuts net profit by 25%.
How much more do I need to sell to make up for a discount?
Divide the profit the discount gives away by the contribution margin on each discounted sale. Contribution margin is net revenue minus cost of goods sold and variable costs. In the example numbers, a 5% discount requires about 11% more volume to earn the same net profit.
Is a price increase worth more than an increase in volume?
A price increase adds revenue without adding cost of goods sold or variable costs, so the full increase reaches net profit. New volume brings its own costs with it. In the example numbers, a 5% price increase adds as much net profit as 10% more volume.
What is a healthy gross margin and net margin?
The answer depends on your business model. As a general guide, professional services firms and agencies aim for a gross margin of 50% or more and a net margin of 15% or more. Software companies often run gross margins of 75% or more. Product and distribution businesses often target a gross margin of 40% or more and a net margin of 10% or more. Pick your business type in step 3 to see where your numbers land.
Does this calculator save or share my numbers?
No. The math runs in your browser. Nothing you enter is stored or sent anywhere, and your numbers reset when you leave the page.