Work & small business · 423

Bundle discount margin calculator

What margin is left on a product bundle?

Your numbers

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Examples, chart, and saved snapshots

Start with a realistic example, adjust the inputs, or save your numbers before experimenting.

Example 1

A 50 bundle of a 40 item and a 25 item

Item A sells alone for 40 and costs 18. Item B sells alone for 25 and costs 10. The bundle price is 50. Those prices are an example so you can see the arithmetic. Publication 334 does not set a bundle discount.

44%of the bundle price
Example 2

Item A shelf price: 25% lower

Change item a shelf price to 30 while keeping the other example values the same.

44%of the bundle price
Example 3

Item A shelf price: 25% higher

Change item a shelf price to 50 while keeping the other example values the same.

44%of the bundle price

Interactive chart

See what changes the result

Result—

The chart changes one input while holding all other current values steady. It is a sensitivity view, not a forecast.

Browser snapshots

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Quick answer

What does the Bundle discount margin calculate?

What margin is left on a product bundle? This calculator uses item a shelf price, item a unit cost, item b shelf price, item b unit cost, and bundle price to estimate gross profit on one combined price immediately in your browser.

With the values currently entered, the result is 44% — of the bundle price. It also shows bundle profit, combined unit cost, discount versus separate prices, and profit if sold separately.

How to use the Bundle discount margin

  1. Replace the example values with your own numbers.
  2. Review the result and supporting figures as they update automatically.
  3. Check the formula and assumptions before using the estimate for a decision.

Inputs used

  • Item A shelf price
  • Item A unit cost
  • Item B shelf price
  • Item B unit cost
  • Bundle price

Bundle discount margin formula

Bundle profit = bundle price - (item A cost + item B cost). Margin = that profit ÷ bundle price. The discount is the two shelf prices minus the bundle price.

Assumptions

  • IRS Publication 334, chapter 7, figures gross profit as net receipts minus cost of goods sold, then compares that profit with net receipts. The receipt here is the bundle price. The cost is the two unit costs added together.
  • SBA defines contribution margin as the price minus the cost to make the product. Shelf prices are the amounts you type. Publication 334 does not set a bundle discount.

Verify the inputs

Authoritative sources

These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.

Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.

Practical guide

Bundle discount margin example and edge cases

A bundle margin is the gross profit on the combined price. IRS Publication 334 figures gross profit as net receipts minus the cost of goods sold. Here the receipt is the bundle price, and the cost is the two unit costs added together.

Example: A 50 bundle of a 40 item and a 25 item

Item A sells alone for 40 and costs 18. Item B sells alone for 25 and costs 10. The bundle price is 50. Those prices are an example so you can see the arithmetic. Publication 334 does not set a bundle discount.

Item A shelf price
40
Item A unit cost
18
Item B shelf price
25
Item B unit cost
10
Bundle price
50

Calculated result44%of the bundle price

Combined cost is 28. Profit on the 50 bundle is 22, which is 44 percent of the bundle price. Sold separately, the two items bring in 65 and a profit of 37. The bundle gives up 15.

Example results use the default display profile. The calculator above follows your selected country and units.

How to read the result

  • Read the 44 percent first. It is 22 of profit divided by the 50 bundle price. The 22 is 50 minus the 28 of unit cost.
  • The separate shelf prices add to 65. The bundle is 15 less, and the cost does not change, so that 15 is also the profit you give up. A different pair of shelf prices changes the gap.

Edge cases worth checking

A third product is missing from the two cost boxes

Add its cost into one of the cost boxes, and its shelf price into that item’s price box. Leave it out and the 44 percent describes a bundle that is cheaper to ship than the one you actually sell.

The bundle costs more than the two shelf prices

A bundle can be priced above the two items bought alone, for example when you include a setup visit. The discount line turns negative. Profit is still the bundle price minus the two costs.

What changes the result most

Item A shelf price

Use a current amount for item a shelf price. Include fees or recurring costs that belong in the same figure.

Item A unit cost

Use a current amount for item a unit cost. Include fees or recurring costs that belong in the same figure.

Item B shelf price

Use a current amount for item b shelf price. Include fees or recurring costs that belong in the same figure.

Try a different scenario

Small changes show whether the answer is stable or sensitive.

Item A shelf price: 25% lower

30

44%of the bundle price

Item A shelf price: 25% higher

50

44%of the bundle price

Item A unit cost: 25% higher

23

34%of the bundle price

Common mistakes

Check item a shelf price

IRS Publication 334, chapter 7, figures gross profit as net receipts minus cost of goods sold, then compares that profit with net receipts. The receipt here is the bundle price. The cost is the two unit costs added together. Make sure this matches the number you enter.

Keep bundle price consistent

SBA defines contribution margin as the price minus the cost to make the product. Shelf prices are the amounts you type. Publication 334 does not set a bundle discount. Use the same units and time period throughout the calculation.

Do not rely on one bundle discount margin scenario

Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.

Use this result well

Use it for

What margin is left on a product bundle?

Do not use it as

It does not replace a quote, contract, accountant, or local employment guidance.