Promotional Lift Calculator
Calculate the ROI of a discount campaign. Determine if the increase in sales volume (Lift) is enough to offset the lower margin and ad spend.
Campaign Inputs
Volume Scenarios
Baseline vs Promo Performance
Promo Verdict
Warning: Profit Bleed
The Hurdle
You needed to sell 800 units (+60% lift) just to make the same money as doing nothing.
Actual Performance
You sold 800 units (+60% lift).
Net Impact
The promotion cost you $0 in bottom-line profit.
Execution Steps
Enter Baseline Metrics (Normal Price, Volume, Margin).
Configure the Promo (Discount %, Fixed Ad Spend).
Enter 'Promo Volume' (Actual result or Forecast).
The tool calculates the 'Break-Even Lift' required and your actual Net Profit gain/loss.
Pro Strategy
- Always calculate the 'Break-Even Lift' before launching. If you need a 300% sales increase to break even, the promo is too risky.
- Fixed costs (Ad Spend) hurt promo profitability significantly. Ensure your basket size (AOV) is high enough to absorb the CPA.
- A promo that breaks even on profit might still be successful if it acquires new customers (LTV play) or clears dead stock.
Core Concepts
Incremental Lift
The additional sales generated strictly due to the promotion, over and above what you would have sold anyway (Baseline).
Margin Dilution
The reduction in profit per unit caused by the discount. If you discount 20% on a 40% margin product, you cut your profit in HALF.
Cannibalization
When customers who would have paid full price buy at the discount price instead. This calculator assumes all baseline sales are 'cannibalized' by the promo price.
What is Promotional Lift Calculator?
This calculator compares two states: The 'Counterfactual' (what would have happened without the sale) vs the 'Actual' (what happened with the sale). It accounts for the margin squeeze from the discount and the added fixed costs of marketing to reveal the true financial impact.
Best For
- • Post-mortem analysis of a Black Friday sale.
- • Planning a flash sale.
- • Deciding between a deep discount or a moderate one.
Limitations
- • Assumes all promo sales happen at the discounted price.
- • Does not factor in 'forward buying' (customers stocking up now and buying less later).
- • Simplified baseline (doesn't account for seasonality).
Alternative Methods
Discount Ladder
Looking at margin erosion per unit without fixed costs.
Customer LTV Calc
Analyzing the long-term value of acquired deal-hunters.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Beauty Brand BOGO
Ran a Buy-One-Get-One (50% effective discount) sale.
Margin was 70%. Discount cut unit profit by 71%.
Furniture Retailer
15% Off Sale with $5k Ad Spend.
Base margin 50%.