How much funding makes the promotion work?

How the calculation works

totalFunding = eligibleUnits * fundingPerUnit + fixedFunding

fundedContribution = promotionBeforeFunding + totalFunding

contributionChange = fundedContribution - baselineContribution

minimumTotalFunding = Math.max(0, baselineContribution - promotionBeforeFunding)

minimumPerUnitFunding = Math.max(0, baselineContribution - promotionBeforeFunding - fixedFunding) / eligibleUnits

An earned funding amount is part of the contribution scenario. Settlement timing and collection risk are separate from the campaign's contribution calculation.

A worked example

A promotion contributes €23,700 before funding versus a €25,000 baseline. It needs €1,300 support to match the baseline, or €0.8125 per eligible unit across 1,600 units. Funding of €2 per unit adds €3,200 and lifts the contribution difference to €1,900.

Use it carefully

• When eligibleUnits is zero, display the remaining fixed-funding requirement and mark the per-unit requirement unavailable.
• The pre-funding promotion contribution must already include promotion costs and must not already include the support entered here.
• Check whether funding is based on purchases, sales, eligible SKUs, dates or performance thresholds; use the relevant eligible quantity.
• If your unit cost is already net of this supplier allowance, do not add the allowance a second time.
• This calculator models a linear per-unit allowance plus a fixed amount; tiered or capped contracts need their actual payout rules.

Common questions

Should I use promised or earned funding?

Use funding the scenario actually qualifies for. A promise subject to unmet conditions should not be treated as earned support.

Is supplier funding the same as a lower unit cost?

It can have the same arithmetic effect when eligibility and volume match. The calculator keeps the support separate so the source of the improvement remains visible.

Related calculations

Further context: SAP: vendor funding definition. Equations and examples were independently prepared for this calculator.