Free merchant tool
See what a discount does to margin.
Enter cost, price, and percent off. We show the margin you keep, and how it sits next to stores like yours.
No account. Your numbers stay in this browser.
Margin = (sale price − cost) ÷ sale price
What is discount margin?
Discount margin is the profit you keep after a sale price. If an item costs 40 and sells for 100, the margin is 60%. Take 20% off and the sale price is 80, so the margin drops to 50%. It is a simple way to see whether a promo still pays.
Margin = (sale price − cost) ÷ sale price
Back to the calculatorWhat is a good margin after a discount?
A good leftover margin still sits near what similar stores usually keep on a full-price sale. Higher is generally better: ads, shipping, and payment fees still come out of that number. For a beauty brand, 50% after a promo can be healthy. For electronics, 15% can be healthy too. The number only makes sense next to your category.
What is a thin margin?
A thin margin is not a failure. It means each discounted sale leaves less cash. If the leftover margin is well below similar stores — or worse, below cost — ads and shipping can turn the promo into a loss. That is the warning sign.
A deeper discount is not always smarter
Do not chase a huge percent-off if it wipes the profit. A 10% bundle discount that lifts the basket can beat a 40% flash sale that sells at cost. Watch leftover margin together with how many extra orders the offer actually creates.
Typical Shopify gross margin by category
These are ballpark gross-margin figures for Shopify stores, before ads and shipping, not a grade. Your costs, country, and product mix matter more than matching a chart.
| Business Category | Typical margin |
|---|---|
| Fashion and apparel | 55% |
| Beauty and cosmetics | 62% |
| Electronics | 25% |
| Luxury and jewelry | 50% |
| Food and beverage | 35% |
| Home and garden | 45% |
| Health and wellness | 55% |
| Sports and outdoors | 45% |
| Pets | 40% |
| Toys and kids | 42% |
| Furniture | 45% |
| Digital products | 85% |
Want a discount that still pays?
Bundles, kits, and “buy more, save more” let you cut the extra item without flattening the first one’s margin. The shopper feels a deal. You keep a floor.
The cheapest extra sale is the one that still has margin.
Shoppers already decided to buy. A bundle can be the discount — without giving the whole basket away.
Support calls available in🇺🇸 English🇧🇷 Português BR