Multi-Buy Calculator
Optimize 'Buy More, Save More' offers (e.g. 3 for $25). Ensure the increased basket size offsets the margin rate reduction.
Single Unit
Multi-Buy Offer
Profit per Transaction
Transaction Value
Profit Lift: +$7.00
Unit Margin
Single margin is 60.0%. Bundle margin is 52.0%. You sacrifice margin rate for volume.
Customer Savings
The customer saves 16.7% by buying in bulk.
The Upsell
You convince the customer to spend $15.00 more than they planned.
Execution Steps
Enter the Single Unit Price and Cost.
Set the Bundle Quantity (e.g., 3) and Bundle Price (e.g., $25).
Compare the 'Profit per Transaction'. Ideally, the bundle should generate more total profit dollars than a single sale, even at a lower margin %.
Pro Strategy
- Ensure the bundle price ends in a compelling digit (e.g., 2 for $20, 3 for $30). Round numbers work well for bundles to reduce math friction.
- The discount should be at least 10-15% to motivate the bulk purchase.
- Check your 'Profit Lift'. If you make LESS profit dollars on the bundle than on a single unit, you are paying the customer to take your inventory.
Core Concepts
Basket Building
Strategies designed to increase the number of items a customer puts in their cart (UPT - Units Per Transaction).
Marginal Utility
The value of an additional unit decreases for the consumer. The 1st donut is worth more than the 12th. Multi-buy pricing aligns with this decreasing value.
Inventory Velocity
Multi-buys are excellent for clearing stock quickly. Selling 3 units at once triples your velocity.
What is Multi-Buy Calculator?
This tool calculates the unit economics of a volume discount. It compares the profit of a single unit transaction against a multi-unit transaction to ensure that the 'upsell' adds accretive value to the bottom line.
Best For
- • Planning grocery/retail weekly circulars.
- • Setting up Shopify 'Bundle and Save' apps.
- • Clearance strategy.
Limitations
- • Assumes linear costs (no shipping savings calculated here).
- • Does not predict conversion rate lift.
Alternative Methods
Bundle Profit
For heterogeneous bundles (different items).
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Grocery Store
Avocados spoiling.
Changed from $1.50 each to '4 for $5'.