Should fees be calculated on the original or discounted price?

In most order-level estimates, percentage selling and payment fees are calculated on the amount actually charged to the customer.

Why can a small discount remove so much profit?

Discounts reduce revenue dollar for dollar, while many costs stay the same. That makes margin compress quickly on low-margin products.

Does this include coupon platform costs?

Add coupon, influencer, or promotion costs in Other costs if they apply to each order.

Profit math

Discount Profit Margin Calculator

Estimate discounted sale price, remaining profit, and margin after a promotion.

US / USD Last updated: June 14, 2026

Inputs

Original pricePrice before discount.$DiscountDiscount percentage offered to the customer.%Product costCOGS, base product cost, or packaging.$Shipping costSeller-paid shipping or fulfillment.$Selling feesCombined platform and payment percentage.%Fixed feeFixed per-order fee.$Other costsOptional other costs per order.$

Results

Discounted price$85.00

Profit after discount$25.69

Profit change-$14.11

Discounted revenue

$85.00

Discount impact15% discount from the original price.

- $15.00

Selling and payment fees5.9% of discounted price plus fixed fee.

- $5.32

Product costCost of goods, base product, packaging, or materials.

- $42.00

Shipping costSeller-paid shipping or fulfillment cost.

- $8.00

Other costsOptional extra costs.

- $4.00

Net profit

$25.69

Compare profit after discount against your normal profit before running a promotion.

Formula

Discounted price = original price x (1 - discount percentage).

Net profit = discounted price - fees - product cost - shipping cost - other costs.

Profit margin = net profit / discounted price.

Example

If a $100.00 item is discounted by 15%, the discounted sale price is $85.00. The calculator then subtracts selling fees, product cost, shipping cost, and other costs to estimate remaining profit.

Assumptions

This calculator treats the discount as a direct price reduction and applies percentage fees to the discounted sale price. Tax, refunds, returns, and ad spend are not included.

Sources and update notes

Shopify profit margin overview

Disclaimer

Last updated: June 2026. Rates may vary by country, category, seller plan, account status, promotion, and payment method. This calculator provides estimates only and should not be treated as financial, tax, or legal advice.