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.