Percentage Off vs Dollar Off: Find the Better Coupon
A fixed-dollar coupon wins on smaller carts; a percentage coupon becomes stronger as the eligible subtotal grows.
Find the break-even amount
Convert the percentage to a decimal and divide the fixed discount by it. At the break-even cart, both offers save the same amount. Below it, the dollar coupon wins; above it, the percentage coupon wins.
Example: $10 off or 20% off
The break-even cart is $50. On a $40 eligible cart, 20% saves $8, so $10 off wins. On a $75 cart, 20% saves $15, so the percentage coupon wins.
Fixed and percentage coupons at different carts
The larger cart makes the percentage offer stronger.
| Scenario | $20 off | 15% off | Result |
|---|---|---|---|
| $80 eligible cart | Save $20 | Save $12 | $20 off wins by $8 |
| $133.33 eligible cart | Save $20 | Save $20 | Break-even |
| $200 eligible cart | Save $20 | Save $30 | 15% wins by $10 |
The break-even point is a starting point
The simple formula assumes both coupons apply to the same subtotal without caps. With $20 off versus 15% off, the mathematical break-even is $133.33. But a $20 coupon requiring a $100 minimum cannot be used below that amount, and a 15% coupon capped at $18 stops growing at $120.
After applying those terms, the fixed coupon wins at every eligible cart above $100 because the percentage offer never exceeds $18. A headline rate cannot replace the actual maximum saving.
Compare the basket you would buy without the coupon
A minimum-spend coupon can alter the basket itself. If you planned to spend $70 but add $30 to use a $20-off-$100 offer, the checkout becomes $80—$10 more than the original plan. The discount is real, but it did not reduce cash outlay.
- Write down the original planned subtotal.
- Remove excluded products from the eligible amount.
- Apply the minimum spend and maximum discount.
- Check whether the coupon changes shipping eligibility.
- Compare both final totals, not only coupon values.
Apply caps and minimum spends
A “20% off up to $25” coupon stops growing at a $125 eligible cart. A fixed coupon may require a minimum purchase. Use the eligible subtotal after exclusions and verify whether shipping or tax counts toward the minimum.
Compare final totals when offers differ
If one coupon changes free-shipping eligibility, comparing coupon values alone is not enough. Calculate the complete checkout under each offer.
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