Fixed Amount Discount Break-Even Calculator: Know Your Dollar-Off Numbers

Here's a question that will change how you think about fixed amount discounts forever:

If you offer a $15 fixed discount on a product with $40 profit, how many more units do you need to sell just to make the same profit?

Most merchants guess wrong. Way wrong.

The answer depends on your profit per unit. And that's exactly what this calculator shows you.

Enter your numbers below. See the truth. Then decide if that fixed amount discount is really worth it.

How Fixed Amount Discount Math Works

The break-even formula for fixed amount discounts is straightforward but powerful:

Let's walk through a real example:

• Product Price: $100
• Product Cost: $60
• Original Profit: $40
• Fixed Amount Discount: $15 off

Calculation: $15 / ($40 - $15) = $15 / $25 = 0.60 = 60% more sales needed

With your $15 fixed amount discount, your profit per unit drops from $40 to $25. To maintain the same total profit, you need to sell 60% more units. If you normally sell 100 units, you now need 160 units just to break even.

Why Fixed Amount Discounts Hit Harder on Cheaper Products

Here's what makes fixed amount discounts tricky: the same dollar discount has a dramatically different impact depending on your product price.

Consider a $10 fixed discount on two different products:

The same $10 requires 6x more effort on the cheaper product. This is why many stores use percentage discounts for lower-priced items and reserve fixed amount discounts for higher-ticket products.

Fixed Amount Discount Break-Even Reference Table

Use this table to quickly estimate break-even points for common fixed amount discounts. Find your approximate profit per unit, then see the required sales increase.

∞ = Impossible. When your fixed amount discount equals or exceeds your profit, no amount of volume can make the promotion profitable. You're either making $0 or losing money on every sale.

The "Dedicated Buyer" Problem with Fixed Amount Discounts

Here's a painful truth about fixed amount discounts: some of your visitors were already going to buy at full price.

When you show a "$10 OFF" popup to everyone who visits your store, you're handing that $10 to people who didn't need it to decide. These "dedicated buyers" would have purchased anyway. You just gave away $10 in profit for a sale that was already happening.

The math gets worse when you consider that dedicated buyers are often your best customers—high-intent visitors who trust your brand. Every fixed dollar discount they use is pure margin loss.

A Smarter Approach: Intent-Based Fixed Amount Discounts

What if you could show your fixed amount discounts only to visitors who actually need them to convert?

Intent-based discounting identifies hesitant visitors through behavioral signals:

• Exit intent: Mouse moving toward the close button
• Long idle time: Stuck on a page, not engaging
• Cart abandonment: Items added but checkout not started
• Multiple page views without action: Browsing but not buying

By reserving your fixed dollar discounts for these hesitant visitors, you protect full-price revenue from convinced buyers while still rescuing sales that would otherwise be lost.

Growth Suite does this automatically. It analyzes visitor behavior in real-time, showing personalized fixed amount discount offers only when the data suggests someone needs that extra push. Your "$15 off" offer goes to visitors who need it—not to those who were already reaching for their wallet.

When to Choose Fixed Amount vs. Percentage Discounts

Fixed amount discounts work best in specific situations:

• Higher-priced products: "$50 off" on a $500 item sounds substantial (10%) but keeps break-even reasonable
• Shipping thresholds: "$10 off orders over $75" encourages cart building
• New customer acquisition: A fixed dollar amount is easier to understand and budget
• Price anchoring: Customers see the exact savings, which can feel more concrete

For a deep dive into choosing between discount types, see our guide on Percentage vs. Fixed Amount Discounts.

Key Takeaways on Fixed Amount Discount Break-Even

1. Know your profit per unit first. Your fixed discount amount comes directly out of this number.
2. Never discount more than your profit. If your profit is $25, a $25+ discount means you make nothing (or lose money) per sale.
3. Same dollar discount, different impact. $10 off a $100 product is much more sustainable than $10 off a $30 product.
4. Calculate before you commit. Use this calculator every time you plan a fixed amount promotion.
5. Protect full-price buyers. Use intent-based targeting to show fixed discounts only to visitors who need them.

Your fixed amount discount didn't cost you just the face value—it cost you that amount multiplied by every customer who would have paid full price. Run the numbers. Know your break-even. And consider whether every visitor really needs to see that "$X off" offer.