How the bundle and BOGO calculator works
Set the number of units in the offer, regular price and unit cost for one item, then enter the discount and per-order costs. A two-unit BOGO with one unit free is modeled as two units and a 50% discount on their combined list value. A “buy two, get one” offer can be modeled as three units with a 33.33% discount.
The tool treats fulfillment, fixed payment charge and ad cost as per-order amounts. Payment percentage applies to discounted bundle revenue. It does not assume that the payment provider refunds fees on returns or that advertising cost changes with basket size.
Formula and a checked example
Bundle revenue = units × regular unit price × (1 − discount rate). Contribution = bundle revenue − units × unit cost − fulfillment per order − (bundle revenue × payment rate + fixed payment fee) − ad cost per order. Contribution margin = contribution ÷ bundle revenue.
For two $30 items at 25% off, bundle revenue is $45. With $9 unit cost, $5 fulfillment, a 2.9% payment rate plus $0.30 fixed fee, and no ad cost, modeled contribution is $20.395, or $10.1975 per unit; margin is about 45.3%. Currency display rounds to cents.
Use the break-even discount carefully
The break-even discount output is the approximate maximum discount before this order contribution reaches zero under the costs entered. It is capped for display between 0% and 100%, and assumes the same unit costs and per-order expenses. A positive contribution does not prove the promotion is incremental or profitable after overhead.
Before launch, compare the offer with a single-item order and your margin floor. Include shipping subsidies, packaging, discounts funded by suppliers, taxes, returns and marketplace fees where applicable. Run a controlled test and evaluate incremental contribution rather than revenue alone.