BOGO break-even calculator

Enter the price and cost of one unit and how many BOGO buyers would have paid full price for one unit anyway. The calculator returns the margin, the break-even share and the profit change per BOGO order.

In dollars.

What the unit costs you, in dollars.

A percent from 0 to 100. Estimate it from your own order history.

Gross margin: 60.0 percent

Profit on an order that exists only because of the offer: 8.00 dollars

Highest share of buyers who were coming anyway before the offer loses money: 33.3 percent.

New orders needed per order that was coming anyway: 2.00

Change in profit per BOGO order at your share: 3.20 dollars

How the math works

Break-even share s = 2 − 1 ÷ m, where m = (price − cost) ÷ price. Profit change per BOGO order = price × (2m − 1 − s × m).

  • The offer is one free unit with one paid unit, so each BOGO order carries two units at your cost.
  • Buyers are either new orders or single-unit orders that were coming anyway. Shoppers who would have bought two units are not modeled; the post shows that case.
  • Shipping, packaging, payment fees and returns are not included. Subtract them from your margin first if they are material.

The derivation, with worked examples, is in BOGO Margin Math: When the Second Unit Loses. Every figure the calculator shows comes from the numbers you type; nothing is a benchmark.

Sources

Build this offer from the “Buy one, get one (BOGO)” template.