Bundle Pricing Calculator

How it works

A bundle sells several items together for less than their regular prices add up to. The calculator totals the regular prices, takes the bundle discount off that total to get the bundle price, and shows the difference as the customer's saving.

The costs do not change when the items are bundled, so the whole discount comes out of gross profit. The bundle margin is the gross profit on the bundle as a share of the bundle price; the separate margin is the same measure if each item sold alone at its regular price. A bundle margin below zero means the bundle sells for less than the items cost.

The table spreads the bundle price across the items in proportion to their regular prices, so each item takes the same discount percent as the bundle. Items with price and cost both at 0 or blank are left out, so a bundle can have two to six items.

Formula

items separately = Σ item prices
bundle price     = Σ item prices × (1 − discount % ÷ 100)
customer saving  = Σ item prices × discount % ÷ 100
bundle margin    = (bundle price − Σ item costs) ÷ bundle price × 100
separate margin  = (Σ item prices − Σ item costs) ÷ Σ item prices × 100
share of bundle  = item price × (1 − discount % ÷ 100)

Example

Three items priced $12, $12 and $9 cost $4.80, $5.10 and $3.20. Sold separately they total $33.00 for $13.10 of cost: a gross profit of $19.90 and a 60.30% margin.

With a 15% bundle discount the bundle price is $28.05 and the customer saves $4.95. The gross profit falls to $14.95, a 53.30% margin.

Assumptions and limitations

• Each item's cost is the same in the bundle as when sold alone. Savings on packing, shipping or handling one order instead of several are not modelled unless you lower the costs.
• The comparison is per set of items. It does not estimate how many more units a bundle sells or whether bundle buyers would have bought the items separately; those are outside the calculation.
• The customer saving is measured against the regular prices you enter. If the items are usually sold at a discount, the saving a customer sees is smaller.
• The bundle price is not rounded to a price ending; rounding changes the margin slightly.
• Results are for informational and educational purposes and are not financial, tax or accounting advice.

Frequently asked questions