How to calculate Deal Discount Rate

Deal discount rate is the average percentage taken off list price on won deals. It shows how much price you give away to close.

Formula

Discount rate = (list price − signed amount) ÷ list price × 100

SQL query

This example assumes: deals(id, stage, list_amount, amount, closed_at). It is written in PostgreSQL syntax; date functions differ slightly in MySQL, BigQuery and SQLite, and your column names will differ from these.

SELECT DATE_TRUNC('quarter', closed_at) AS quarter,
       SUM(list_amount - amount) * 100.0 / NULLIF(SUM(list_amount), 0) AS weighted_discount_pct,
       AVG((list_amount - amount) * 100.0 / NULLIF(list_amount, 0))   AS avg_discount_pct
FROM deals
WHERE stage = 'won' AND list_amount > 0
GROUP BY 1
ORDER BY 1;

Common mistakes that make Deal Discount Rate wrong

  • Averaging per-deal percentages weights a tiny deal the same as a huge one; also show the value-weighted rate.
  • Bundled deals with no clear list price give meaningless discounts.
  • Free extras (services, extra seats) discount the deal without changing the amount.

Ask for Deal Discount Rate in plain English

Instead of writing the query yourself, you can type the question. SchemaChat turns it into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. It does not replace your judgement about the definition: check that the query matches the formula your business uses.

  • What was our average discount on won deals each quarter?
  • Which reps discount the most?

Frequently asked questions

What is Deal Discount Rate?
Deal discount rate is the average percentage taken off list price on won deals. It shows how much price you give away to close.
How do you calculate Deal Discount Rate?
Discount rate = (list price − signed amount) ÷ list price × 100. The SQL example on this page shows the same calculation against a simple table.
What commonly goes wrong when calculating Deal Discount Rate?
Averaging per-deal percentages weights a tiny deal the same as a huge one; also show the value-weighted rate.