Free Tool
Discount Stacking & Margin Leakage Simulator
Simulate stacking multiple discounts (%, $, free shipping, BOGO) and see how each layer erodes your profit margin in real-time.
$
$
$
1.
Formula
Final Price = Retail × (1 − Discount₁%) × (1 − Discount₂%) − Fixed Discounts
What is Discount Stacking?
Discount stacking occurs when multiple promotions apply to the same order — a sitewide sale, a coupon code, a loyalty reward, and free shipping all at once. Each layer compounds the margin erosion, often pushing profits negative without the seller realizing.
This simulator lets you stack up to 4 discount layers and visualize exactly how each one eats into your margin — catching "margin leakage" before it costs you money.
Common Discount Stacking Scenarios
- BFCM: 30% sitewide + free shipping + loyalty points = often 45%+ total discount
- Influencer codes: 20% creator code + existing sale price = deeper cut than intended
- Welcome + sale: 10% welcome popup + 20% seasonal sale = 28% compound discount
- Employee/VIP: 40% staff discount + free shipping on a low-margin item = guaranteed loss
How to Prevent Margin Leakage
- Set discount exclusions: Prevent coupon codes from stacking with sale prices
- Use maximum discount caps: Limit total discount to never exceed your margin
- Exclude low-margin products: Keep high-cost items out of sitewide promotions
- Test before launching: Always run worst-case scenarios through this simulator first