Discount %: Discounts as Share of Gross Revenue

Discounts as a percentage of gross revenue—measures how much of your potential revenue is given away through promotions.

Formula

Discount % = ( Discount Amount ÷ Gross Revenue ) × 100

Formula Components

Metric	Definition
Discount Amount	Total dollar value of all discounts applied
Gross Revenue	Product revenue before discounts and refunds

Metadata
Type	Percentage
Data Source	Shopify
Aggregation	Ratio

Example

Your store earned $80,000 in gross revenue during a holiday promotion with $12,000 in total discounts:

Metric	Value
Gross Revenue	$80,000
Discount Amount	$12,000
Discount %	15%

How It Works

Discount % divides total discount dollars by gross revenue (before discounts and refunds). A high percentage indicates heavy promotional reliance, which erodes margins and can train customers to wait for sales.

When to Use

Scenario	Action
Evaluating promotions	Compare pre and post-campaign to measure discount escalation
Protecting margins	Set thresholds to prevent discount creep (e.g., stay under 10%)
Segmenting customers	Compare new vs returning customer discount %
Benchmarking channels	Identify traffic sources over-reliant on discounts

Metric	Relationship
Discount Amount	Numerator: total discount dollars
Gross Revenue	Denominator: baseline product revenue
Discount Per Order	Average discount per transaction
Net Revenue	Revenue after discounts and refunds

See all Adjustments metrics →

Discount Amount Discount Per Order

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​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics