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Quantity Break Pricing Calculator

Model up to six quantity tiers, compare profit and margin per tier, and catch price inversions or below-cost tiers.

Currency: USD only. Each tier uses its minimum quantity as the representative order; unit cost is constant across tiers.

Unit economics and tiers

Quantity tiers

Minimum quantity and unit price for each tier. Higher tiers should start at a larger quantity.

TierMin qtyUnit price
1
2
3

Planning model. Each tier is represented by its minimum quantity; unit cost is constant and packaging is per order. Payment fees, ads, returns and tax are excluded unless included in unit cost.

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Tier profit and margin

Top-tier profit

$490.00Profitable. Profit at the highest tier's minimum quantity.
Top-tier revenue$1,400.00Quantity × unit price at the top tier.
Top-tier margin35.0%Profit ÷ revenue at the top tier.
Top-tier customer savings$600.00Customer saves vs the first tier price.
Break-even unit price$18.20Unit price where the top tier profit is zero.
Tiers3Active tiers in the model.
StatusProfitableWhether the top tier is profitable.

Tier-by-tier economics

Each row uses the tier's minimum quantity as the representative order.

Min qtyUnit priceProfitMargin
1$40.00$12.0030.0%
10$34.00$150.0044.1%
50$28.00$490.0035.0%

How tier profit is calculated

Revenue = quantity × unit price. Cost = quantity × unit cost + fulfillment + packaging. Profit = revenue − cost. Margin = profit ÷ revenue. Break-even unit price = cost ÷ quantity. Customer savings = (first-tier price − tier price) × quantity.

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Quantity breaks: price every tier from cost, not from gut

A three-tier quantity discount can look generous and still lose money on the top tier. This calculator prices every tier from unit cost, fulfillment and packaging, then flags price inversions and below-cost tiers.

Fixed fulfillment makes bigger orders more profitable

If fulfillment is $8 per order, a one-unit order carries the full $8 while a 50-unit order spreads it across 50 units. That is why a lower unit price can still produce a higher margin on a larger order.

If fulfillment scales with units, the opposite is true: the cost per order rises with quantity and the discount has less room. The per-order/per-unit switch changes the answer.

The formula, tier by tier

Revenue = quantity × unit price. Cost = quantity × unit cost + fulfillment + packaging. Profit = revenue − cost. Margin = profit ÷ revenue.

Break-even unit price = cost ÷ quantity. Customer savings = (first-tier price − tier price) × quantity. Each tier uses its minimum quantity as the representative order.

Worked example

Unit cost $18, fulfillment $8 per order, packaging $2. Tiers: 1 @ $40, 10 @ $34, 50 @ $28.

Tier 1 profit is $12 at a 30.0% margin. Tier 2 profit is $150 at 44.1%. Tier 3 profit is $490 at 35.0%. The customer saves $60 at tier 2 and $600 at tier 3 versus the first-tier price.

Price inversion

A higher tier should have a lower unit price. If tier 2 is $45 and tier 1 is $40, the customer has no reason to buy more, and the calculator flags a price inversion.

The result is still calculated so you can see the economics, but the warning means the tier structure is not a quantity discount. Fix the price or remove the tier.

Below-cost tiers

The break-even unit price at 50 units is $18.20. A tier price below that loses money before payment fees, ads and returns. The calculator flags any tier with negative profit.

Do not assume the top tier can be a loss leader. If the goal is to win a large order, model the order separately and decide whether the strategic value justifies the loss.

How to test it

Start with three tiers, not six. Watch the mix: if most customers buy at the top tier, the discount may be deeper than needed. Compare margin and average order value before and after the change.

Use the bundle calculator for mixed-SKU bundles and the discount calculator for a single percentage-off promotion. This tool is for quantity tiers of one SKU.

Quantity pricing references checked October 2026: Shopify quantity discounts · Shopify bundles · Omni markup

How to Calculate Bundle Price for Ecommerce: Formula, BOGO, and Profit

What is a quantity break?+

A price per unit that drops when the order quantity reaches a threshold. Each threshold is a tier, with its own minimum quantity and unit price.

Why does a larger order sometimes have a higher margin?+

Fixed costs such as fulfillment and packaging are spread across more units. If those costs are per order, a lower unit price can still leave a higher percentage margin.

What is price inversion?+

A higher tier priced at or above a lower tier. It removes the incentive to buy more and usually signals a data-entry error or a poorly designed tier.

How is the break-even unit price calculated?+

Total tier cost divided by the tier quantity: (quantity × unit cost + fulfillment + packaging) ÷ quantity. A price below that loses money before fees, ads and returns.

Should I use per-order or per-unit fulfillment?+

Use per-order when the carrier charges a fixed amount per shipment. Use per-unit when fulfillment scales with the number of units, such as pick-and-pack fees per item.

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