Volume discount calculator
Enter the base unit price and your price breaks (“10+: 5%”), then the order quantity – the calculator shows the total, the average price per unit, your savings, how many units are missing to the next tier and whether ordering up is actually cheaper. For a single percent-off discount, use the discount calculator.
How it is calculated
Two ways to apply volume discounts
With a volume (quantity) discount, the unit price drops as the order gets bigger. How the tiers are applied is set by the seller’s price list – and it makes a real difference:
- All-units discount: the tier you reach applies to every unit. Order 45 units with 5% off from 10 units and all 45 get the lower price.
- Incremental (graduated) discount: each tier price applies only to the units inside that tier. The first 9 units are full price; the discount starts with unit 10.
Example: 45 units at $10 with breaks at 10 / 50 / 100
Price breaks: 5% from 10 units, 10% from 50, 15% from 100. The unit prices are $10.00, $9.50, $9.00 and $8.50.
| All-units | Incremental | |
|---|---|---|
| Calculation | 45 × $9.50 | 9 × $10.00 + 36 × $9.50 |
| Total | $427.50 | $432.00 |
| Savings vs. $450 | $22.50 (5%) | $18.00 (4%) |
| 50 units cost | 50 × $9.00 = $450.00 | 90 + 40 × 9.50 + 1 × 9.00 = $479.00 |
Should you order up to the next price break?
With all-units pricing a bigger order can cost less in total. The break-even quantity is threshold × new unit price ÷ current unit price: 50 × 9.00 ÷ 9.50 = 47.37. From 48 units it is cheaper to order 50 – 48 units cost $456.00, 50 units only $450.00. At 45 units, the 5 extra units add $22.50.
With incremental tiers every extra unit costs money, so ordering up never lowers the total, only the average price. Whether the extra units are worth it depends only on whether you need them.
Entering price breaks
One tier per line: first the minimum quantity, then a discount with a % sign or a fixed unit price without %. Examples: 10: 5%, 50+ → 10%, 100; 8.50. Percent discounts apply to the base unit price and are rounded to the cent. Line order doesn’t matter.
Frequently asked questions
How do you calculate a volume discount?
Multiply the quantity by the unit price of the tier reached. $10 per unit with 5% off from 10 units → $9.50 each; 45 units cost 45 × 9.50 = $427.50 instead of $450. With incremental tiers the first 9 units are full price: 90 + 36 × 9.50 = $432.
What is the difference between all-units and incremental discounts?
All-units: the price of the tier reached applies to the entire order. Incremental: each price applies only to the units within its tier, like a tax bracket. With the same table and falling unit prices, incremental pricing is never cheaper for the buyer.
When does it pay to buy more to reach the next tier?
With all-units pricing, from threshold × new price ÷ current price. With a threshold of 50, $9.00 and $9.50: 50 × 9 ÷ 9.5 = 47.37, so from 48 units ordering 50 is cheaper. The calculator shows this break-even point automatically.
Can I enter fixed prices instead of percentages?
Yes. Lines with % are discounts on the base price, lines without % are unit prices – e.g. “100: 8.50”. You can mix both in one table.
How do I calculate tiered pricing in Excel?
Put the tiers in a table (column A: minimum quantity ascending, column B: unit price). The unit price for the quantity in D1 is =VLOOKUP(D1,A:B,2,TRUE); the all-units total is =D1*VLOOKUP(D1,A:B,2,TRUE).
Sources and legal basis
As of:
Related tools
- Discount calculatorPercent off calculator: sale price and savings for any discount, stacked discounts like 20% + 10%, the percent off between two prices and the original price.
- Unit price calculatorCompare 2–4 package sizes by price per ounce, fluid ounce, 100 g, kg or liter. Shows the best deal and how much you save in percent – oz, lb, g, mL, L or count.
- Margin calculatorProfit margin calculator: margin %, markup %, gross profit and price multiplier from cost and price – or the selling price for a target margin or markup.
- Selling price calculatorWork out the selling price of a product from cost, shipping, packaging, percentage selling fees and your target margin – fees are solved correctly.
- Percentage CalculatorFree percentage calculator: find X% of a number, what percent one number is of another, percentage change, increase and discount – with formula and steps.
- Break-even calculatorBreak-even point calculator for small businesses: units and sales dollars to break even from fixed costs, price and variable cost, plus a target profit.