Discount Calculator

Discounting without giving away margin

A discount is a fast way to win a deal, but every percentage point comes straight off your profit. Before you offer one, know exactly what it costs you. This calculator shows the money saved and the final price so the conversation is grounded in numbers, not vibes.

For freelancers, prefer adding value (a faster timeline, an extra deliverable) over cutting your rate — a discount sets a lower anchor for every future project with that client.

Stacking discounts

Two discounts do not simply add up. A 20% then a further 10% off is not 30% off — it is 28%, because the second cut applies to the already-reduced price. When in doubt, apply them one at a time.

What a discount costs in volume, not in price

The question is never what the discount costs on this sale. It is how much more you have to sell to end up where you started. At a 50% margin, a 10% discount means you need roughly 25% more volume to hold the same gross profit. At a 30% margin, the same 10% discount needs about 50% more volume.

That is the calculation to run before agreeing to a standing discount for a client who promises more work. The extra work has to arrive, it has to be at least that much extra, and it has to not displace full-price work you would otherwise have done. For a freelancer with finite hours, the last condition is the one that usually fails: a discounted retainer that fills your calendar has not increased your volume, it has just lowered your rate.