Restaurant scenarioExample 1
$24 with 5% off
Percent mode: 5% of $24 is $1.20, so the final selling price is $22.80. The discount status is Excellent.
Pricing
Restaurant Discount Calculator
Calculate restaurant discounts by percent, fixed amount, or target selling price. See the final ticket, guest savings, revenue given up, optional tax and service charge, and promo-depth benchmark.
Restaurant discount formulas
Formula
Percent mode: Discount Amount = Original Price × (Discount % ÷ 100) Final Selling Price = Original Price − Discount Amount Amount mode: Discount % = (Discount Amount ÷ Original Price) × 100 Final Selling Price = Original Price − Discount Amount Target mode: Discount Amount = Original Price − Target Selling Price Discount % = (Discount Amount ÷ Original Price) × 100 Final Selling Price = Target Selling Price Adjustments and impact: Tax Amount = Final Selling Price × (Tax % ÷ 100) Service Charge = Final Selling Price × (Service % ÷ 100) Net Revenue = Final Selling Price + Service Charge Revenue Lost = Savings = Discount Amount Price Retained % = (Final Selling Price ÷ Original Price) × 100 Lift to Restore List % = Final Selling Price > 0 ? (Discount Amount ÷ Final Selling Price) × 100 : 0
What it means
Choose the mode that matches the offer you control. Percent mode converts a percentage into dollars off. Amount mode converts a fixed dollar offer into its effective percentage. Target mode tells you the discount required to land on an exact promotional price. Tax and service charge are both calculated from the final selling price, but only a house-kept service charge enters net revenue. The discount amount is both guest savings and revenue given up versus list price. Price retained shows how much of list remains, while lift to restore list shows the increase required to climb from the discounted price back to the original price. Discount-depth benchmarks are Excellent at 5% or less, Good above 5% through 10%, Average above 10% through 15%, Low above 15% through 25%, and Critical above 25%. A practical promotional band is roughly 5–15%, but your cost structure and traffic response decide if an offer works. This isn't markup from cost, food-cost menu pricing, full-stack profit margin, or break-even volume.
Good to know
- Original and final prices refer to the same item, bundle, or ticket.
- The discount is applied before tax and service charge.
- Sales tax is remitted and excluded from house revenue.
Ideal range
- This calculator doesn't model ingredient cost, labor, packaging, delivery commission, or other expenses.
- It doesn't evaluate buy-one-get-one mechanics, stacked coupons, minimum-spend rules, or redemption rates.
- It's not a markup-from-cost calculator. Use Markup when you're building price from item cost.
Variables
- Original PriceOriginal price
- Regular menu or ticket price before the promotion.
- Discount %Discount percentage
- Share of the original price removed by the offer.
- Discount AmountDiscount amount
- Dollar value removed from list price and saved by the guest.
- Final Selling PriceFinal selling price
- Discounted price before sales tax and service charge.
- Net RevenueNet revenue
- Final selling price plus a house-kept service charge, excluding sales tax.
- Price Retained %Price retained percentage
- Percentage of the original list price that remains after the discount.
- Lift to Restore List %Lift needed to restore list
- Percentage increase required on the discounted price to get back to list price.
Assumptions
- Service charge is included in net revenue only when the house keeps it.
- Blank optional percentages are treated as zero.
- Benchmarks judge discount depth, with a shallower discount receiving the stronger status.
Limitations
- It's not food-cost menu pricing. Use Menu Price when you're targeting a food cost percentage.
- It's not a full-stack profit margin analysis. Use Profit Margin when the decision includes several cost lines.
- It's not a break-even volume model. Use Break-even to estimate the sales count needed to cover fixed costs.
Worked examples
Real numbers through the same formula this tool uses.
- 1
- 2Restaurant scenarioExample 2
$5 off a $40 ticket
Amount mode: $5 divided by $40 equals 12.5%. The final selling price is $35 and the discount status is Average.
- 3Restaurant scenarioExample 3
Reduce $30 to a $24 target
Target mode: the offer removes $6 from a $30 list price. That's a 20% discount, so the status is Low.
- 4Restaurant scenarioExample 4
$100 with 20% off and 10% tax
A 20% discount removes $20 and leaves an $80 final selling price. Tax is $8 because it's calculated on the discounted price.
- 5Restaurant scenarioExample 5
$50 with 10% off
The final price is $45, so you retain 90% of list. Returning from $45 to $50 requires an increase of about 11.11%.
How to use the restaurant discount calculator
Build the offer from the number you know, then check the ticket impact before publishing it.
Choose how you're setting the offer
Pick Discount % for a percent-off promotion, Discount Amount for a fixed-dollar offer, or Target Selling Price when you need an exact advertised price.
Enter the original price
Use the regular price for the same item, bundle, or ticket. Don't use a price that already includes another coupon.
Add the mode-specific value
Enter the percent, fixed amount, or target price. The calculator fills in the other discount measures.
Add tax and service charge if needed
Use optional rates to see tax and service dollars on the discounted ticket. Net revenue excludes tax and includes a house-kept service charge.
Review depth and revenue impact
Check final price, revenue lost, price retained, and benchmark status. If the discount is deeper than 15%, validate contribution and campaign volume before launch.
How to read discount results
This tool measures promo depth on a list price. It doesn't set markup multiples or full-stack margin. Use it when you're deciding how deep a deal should go.
Start with discount %
Discount % is the share of list price you're giving away. Five percent off a $24 entrée is $1.20. Twenty percent off is $4.80. The status bands score that depth from the house's point of view: shallower cuts score better.
Guest savings and revenue lost are the same dollars
On a simple percent or dollar-off promo, what the guest saves is what you don't collect versus list. The labels help you talk to marketing and finance without changing the math.
Price retained % shows what's left of list
A 20% discount retains 80% of the original price as the final ticket before tax. Lift to restore list % answers a different question: how much you'd need to raise that discounted ticket to get back to list.
Cost questions belong on other calculators
If you need markup from plate cost, use Markup. If you need margin after food, labor, and delivery, use Profit Margin. If you need volume to cover rent, use Break-even. This page is for promo depth on a known list price.
Best practices for restaurant discounts
Promos work when they're intentional. They fail when they quietly become the new list price.
Give every promo one job
Fill Tuesday seats, move a slow SKU, or win a first visit. If you can't name the job, don't cut the price yet.
Time-box deep cuts
Put end dates on 15%+ offers. Print the dates on the flyer so the floor team can answer guests without improvising.
Don't stack blindly with delivery
A 20% off code on top of a platform commission is a different deal than 20% off dine-in. Model channels separately.
Spot-check contribution after the discount
Run the discounted ticket through Contribution Margin or Profit Margin before you approve the creative.
Know how you'll return to list
Use Target Selling Price mode when ops asks for a round number like $19.95. Then plan the date you leave that price.
Common discount mistakes
Most damage comes from habit, not from one bad weekend special.
Letting a temporary cut become permanent
If the 20% lunch deal never ends, you've rewritten the menu without saying so. Guests will fight the return to list.
Forgetting tax and service on the final ticket
Guests pay tax on the discounted price in most markets. Enter tax % so your guest total matches the check.
Cutting every item the same percent
High-margin sides can handle more promo pressure than a thin protein. Prefer selective discounts over blanket cuts.
Assuming volume will cover the giveaway
More covers help only if contribution stays positive. Break-even planning still matters after you set the promo depth.
Treating discount % like markup %
Twenty percent off list is not a 20% markup. Markup builds price from cost. Discount reduces an existing list price.
People also ask
Operator questions that sit beside the FAQs, focused on promo depth and guest checks.
How deep should a restaurant discount go?
Many operators stay in the 5–15% band for everyday promos and reserve deeper cuts for short campaigns. Your plate cost and channel fees decide what's safe. Run the discounted ticket against contribution before you print it.
Is percent off better than a fixed dollar off?
Percent scales cleanly across price points. A fixed $5 off hits a $12 lunch harder than a $48 steak. Use amount mode when marketing wants a round dollar headline, then check the effective percent.
When should I use Target Selling Price mode?
Use it when you already know the ticket you want to charge (often a .95 or .00 price) and need the implied discount % for the flyer and for finance.
How is this different from the Markup Calculator?
Markup builds selling price from item cost and a markup %. Discount starts from a list price you already set and measures how much you give away. Use Markup to set list. Use Discount to plan the promo.
How is this different from Menu Price Calculator?
Menu Price targets food cost % or markup to publish a menu price. Discount assumes that price exists and models the cut. They sit in sequence, not as substitutes.
Is tax calculated on the original or discounted price?
This calculator applies tax % to the final selling price after the discount, which matches how most guest checks work when tax is added at the register.
Does service charge count as house revenue?
Yes, when you enter service charge % here it's treated as kept by the house and added to net revenue. Don't include tips that are paid out to staff.
Can I model BOGO with this tool?
Not directly. BOGO is closer to 50% off the pair, but packaging and which item is free change the math. Approximate with a percent or target price, then validate on Contribution Margin.
What does price retained % mean?
It's the final selling price divided by the original price. A 15% discount retains 85% of list before tax. It's a quick read on how much of the sticker you still collect.
What is lift to restore list %?
It's how much you'd need to raise the discounted ticket to get back to the original price. If you sold at $80 after a $20 cut from $100, you need a 25% lift on $80 to restore $100.
When is a critical discount still okay?
Clearance, spoilage risk, training plates, or a tightly limited influencer code can sit past 25% on purpose. Everyday signature items should not live there.
Does currency change the discount %?
No. Percents are ratios. Currency only formats the money fields. Ten percent off is ten percent in USD, GBP, or AUD.
What if I stack two discounts?
This tool models one cut on list. For stacked offers, apply the first discount, use the result as a new original, then model the second cut, or approximate the combined effective percent carefully.
Will a discount always need more covers to break even?
Usually yes if contribution per ticket falls. Break-even Calculator turns the weaker contribution into the extra volume you need. Discount Calculator only sizes the cut.
Related reading and tools
Move from promo depth into pricing, margin, and volume planning.
Restaurant Markup Calculator
Build or reverse-engineer list price from item cost and markup % before you discount.
Menu Price Calculator
Set menu price from food cost % or markup with tax and service layers.
Restaurant Profit Margin Calculator
Check margin after a full cost stack once the promo ticket is known.
Contribution Margin Calculator
See what remains after variable costs toward fixed overhead on the discounted sale.
Break-even Calculator
Estimate how many more units you need if contribution falls with the promo.
Frequently asked questions
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