Pricing & Promotion Decision Tool

Margin Guard

A quick break-even calculator for price cuts, campaigns, and promotional offers. Enter your baseline price, margin, current unit volume, and planned promo price. Margin Guard shows how much extra demand you need before the discount stops damaging contribution.

Built for
Managers, marketers, and classroom cases
Why it matters
Discounts look easy. Margin recovery usually is not.
Persistence
Saved scenarios stay in your browser
Scenario Inputs

Model the promotion

Use one period as the comparison frame: baseline contribution versus promo-period contribution.

Optional, but useful if you save multiple pricing scenarios.
Use unit-level variable cost rather than fully allocated overhead.
This is your demand assumption. The app compares it against the break-even requirement.
Include media spend, design cost, coupon administration, or one-off display costs.
Decision Readout

What the discount has to earn back

Margin Guard turns the price cut into unit economics, required lift, and a simple decision signal.

Promo clears break-even

Expected promo units are above the required break-even threshold.

Above break-even
Discount Depth
16.7%
The price drop from regular to promo.
Baseline Contribution
$5,000
Before any promo cost or demand lift.
Promo Contribution per Unit
$3.00
Unit contribution after the discounted price.
Break-Even Units
1,750
Units needed for promo contribution to match the baseline period.
Required Unit Lift
75.0%
How much demand must rise from the baseline level.
Expected Net Delta
$0
Expected promo contribution minus baseline contribution.
Volume View

Unit comparison

Compare your baseline volume, the break-even hurdle, and the unit demand you actually expect the offer to generate.

Baseline
1,000 units
Break-even
1,750 units
Expected promo
1,300 units
Logic

How the numbers are built

  • Baseline contribution = (regular price - variable cost) × baseline units
  • Promo contribution = (promo price - variable cost) × promo units - fixed promo cost
  • Break-even units = (baseline contribution + fixed promo cost) ÷ promo contribution per unit
  • Required lift = (break-even units - baseline units) ÷ baseline units
Saved Scenarios

Local scenario log

Saved scenarios stay in this browser with no account and no backend. Use them to compare pricing ideas before you publish an offer.