Enterprise Contract Discount Evaluator

See the lifetime margin a discount quietly gives away.

$
%
yrs
%
Discounted ACV
$80,000
20% off list
Lifetime margin given away
$60,000
over 3% yrs
Profit margin erosion
25%
vs. full price
Lifetime profit (discounted)
$180,000
What you keep

A 20% discount on a 3%-year deal hands back $60,000 of profit — a 25% cut to your margin on this account, because the discount comes straight off the top. Trade any discount for something in return — longer term, case study, or expansion.

Discounts hit profit far harder than revenue because your cost-to-serve doesn't drop with the price. A 20% discount at 80% margin erodes profit by ~25%.

About this calculator

Quantify how a discount compounds across a multi-year contract, eroding lifetime margin — the case for value-based negotiation over reflexive price cuts.

Everything runs in your browser — nothing you type is sent anywhere or stored. Use it to sanity-check a plan, pressure-test a channel, or brief a team before you commit budget.