Coupon ROI calculator
A coupon’s order count flatters it: some of those customers would have bought anyway. Enter your numbers to see what the discount actually earned.
How the calculator works
A coupon earns the profit on orders that only happened because of it, and costs the discount on orders that would have happened anyway.
- Profit from new orders = coupon orders × (1 − share that would have happened anyway) × average order value × gross margin.
- Discount given away = coupon orders × share that would have happened anyway × average discount per order.
- Net result is the first minus the second.
It leaves out repeat purchases from customers the coupon brought in, which can make a coupon worth more over time, and extra shipping or payment costs, which make it worth less. For the full method, read how to tell if a WooCommerce coupon paid off.
Common questions
Where do I find a coupon’s numbers in WooCommerce?
Open Analytics › Coupons and pick the date range. The table shows each code’s orders and the total amount discounted. For the average order value, filter Analytics › Orders by the coupon, or divide the net sales of those orders by their count.
What share of orders would have happened anyway?
Nobody knows exactly, which is why the calculator asks. A code shared publicly on coupon sites mostly discounts orders that were coming anyway; a code sent only to lapsed customers is mostly new orders. Try a few values and see where the coupon stops paying.
Why does the calculator use gross margin, not revenue?
Because a discount comes out of your profit, not your revenue. A 15% discount on a product with a 40% margin gives away more than a third of the profit on that order.