Cashback vs Price Discount Calculator
Which promotional strategy is more cost-effective for your brand?
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Revenue Impact Comparison
Revenue Difference 
A comparison of total revenue from cashback promotions versus price discount promotions, considering only the cost of the incentive and not other promotional costs.
Cashback
Discount
Cost Analysis: Cashback vs Discount
Cashback
Discount
Total Redemptions
Estimated Redemption Rate
Valid Redemptions
The percentage of customers' claims that meet the promotion's criteria. Usually, 85% of claims are valid for cashback promotions. For price discount promotions, the validation rate is 100% as the discount is applied during purchase.
Total Promotion Incentive Cost After VAT Rebate
Estimated VAT Savings (for Cashback Incentives)
VAT Rate
The VAT rate that applies to the product, varying by country.
Incentive Amount per Unit
Recoverable VAT Per Unit
The amount of VAT a business can reclaim per product unit.
Valid Redemptions
The percentage of customers' claims that meet the promotion's criteria, typically achieving an 85% validation rate for cashback promotions. For price discount promotions, the validation rate is 100%.
Total Recoverable VAT
Total Promotion Incentive Cost
(incl. Potential VAT Rebate)
The overall cost of the incentive itself to the business.
Revenue Impact Analysis
Potential Total Revenue
The total revenue generated from product sales.
Incentive Cost
Potential VAT Rebate
The total amount of VAT that can be reclaimed.
Revenue Impact
Revenue Impact After VAT Rebate
Disclaimer: This calculator is for illustration purposes only; information obtained should not be construed as legal or financial advice.
Make data-driven decisions based on reliable financial insights
Compare the incentive cost of issuing cashback rewards versus running traditional price discounts with our online calculator.
Estimate the cost of funding a cashback promotion
Estimate the cost of a traditional price discount promotion
Get a side-by-side comparison of both options
Assess the potential impact of a VAT rebate on cashback paid
Understand the impact on revenue
