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Is crossing a rebate tier worth the extra sales?

Test an all-units rebate against incremental contribution and rebate paid on the existing base.

Example scenario

Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.

Existing annual units
9,000
Additional units to win
1,200
Unit price
$100
Variable cost / unit
$65
All-units rebate at threshold
5 %
Rebate threshold units
10,000
Contribution change vs no extra deal-$9,000

Example result only, not a forecast or promise.

Total rebate cost
$51,000
Additional pre-rebate contribution
$42,000
Units above / below threshold
200

What to do with this result

Compare all-units and incremental-only rebates before negotiating; avoid a cliff that rewards unprofitable volume.

Know what is inside the model.

Planning model, not personalized financial advice. Your inputs remain in your browser.

Calculation method

Incremental profit = extra units × unit contribution − rebate rate × price × all units if threshold is reached.

Assumptions and limitations

  • Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
  • Contribution excludes fixed overhead, tax and financing; validate demand response before changing prices.

Turn the number into a decision.

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