Why you need this
A campaign starts as 'a small discount'; multiplied by quantity the loss grows. With cost fixed, the whole discount comes out of gross profit. VAT is not profit; extracting it from both price and cost at the same rate makes the net impact smaller.
This tool shows sales loss, cost, gross profit and net profit on separate rows; it does not assume extra volume.
How it is calculated
Discount per unit = price x discount rate. Discounted price = price - discount per unit. Sales loss = discount per unit x quantity. Total cost = unit cost x quantity. Gross profit before discount = (price - cost) x quantity. Gross profit after discount = (discounted price - cost) x quantity. Gross profit loss = gross before - gross after.
Price and cost are treated as VAT inclusive. Base = amount / (1 + VAT rate). Net profit = sales base - cost base. Net profit loss = net before - net after.
How to read the result
Sales loss is missed VAT-inclusive revenue. Total cost is the VAT-inclusive amount you entered; do not add it to sales loss. Gross profit uses those two inclusive figures. Net profit extracts VAT from both sales and cost; otherwise you would subtract a tax-in cost from a tax-out sale. This tool does not assume extra orders, only the loss amount.
This tool is for information only.
For purchase quotes and supplier invoice discounts, use the supplier discount calculator.