BOGO / Multi-Buy Calculator
Model BOGO, BOGO-50, Buy 2 Get 1 Free and 'buy 3 save 15%' to see true effective margin.
| Promo | Eff. discount | Order revenue | Order contribution |
|---|---|---|---|
| BOGO (Buy 1 Get 1 Free) | 0.0% | $70.00 | $42.00 |
| BOGO-50 (Buy 1 Get 1 50% Off) | 25.0% | $52.50 | $24.50 |
| Buy 3 Get 1 Free | 0.0% | $140.00 | $84.00 |
| Buy 2 Save 10% (total) | 10.0% | $63.00 | $35.00 |
| Buy 3 Save 15% (total) | 15.0% | $89.25 | $47.25 |
About this tool
BOGO sounds simple until you do the math. 'Buy one get one free' is a 50% discount on the combined order. 'Buy 2 get 10% off' is much gentler. This tool shows the effective discount, true margin per order and the volume lift required to break even on each promo style.
When BOGO actually works
Classic BOGO ("Buy 1 Get 1 Free") is a 50% effective discount on the combined order. It only makes sense when your gross margin is 60%+ and the customer was unlikely to buy the second unit at full price. Apparel, beauty and gifting categories see the strongest BOGO uplift; supplements and CPG generally do better with "Buy 2 Save 10%" style promos that don't give units away.
Watch your margin floor
Any BOGO promo that drops your order contribution below the operating cost (pick/pack/ship/cards) is losing you money even before ad costs. Run the numbers per promo type — the variance between BOGO-50 and Buy-3-Save-15 is enormous.
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