Joyal Loyalty Calculator

Protect Your Margins & Grow Customer Retention

Enter your figures below to find your true Effective Discount Rate (EDR) — how much a reward actually costs your business.

For this calculator: €1 Spent = 1 Point Earned

1The Reward

Set the product or service the customer receives when they redeem their points.

Item or Service Name

Retail PriceThe standard price you charge a customer for this item or service.

€

€1€500

2What Does It Cost You To Make?

Unit Cost (COGS)Enter the raw wholesale value of your product or service (ingredients, materials, packaging). Skip fixed expenses like rent and base staff wages - you pay those overheads whether the customer shows up or not.

€

€0.10€250

3Your True Discount Rate

Here's what a free reward actually costs your business, once you factor in how much a customer had to spend to earn it.

100%The discount your customer thinks they're getting

-Effective Discount Rate (EDR)

What exactly is EDR, and how is this calculated?

Key Terms

Effective Discount Rate (EDR): The actual cost to your business of giving away a reward, relative to how much money the customer spent to earn it. EDR is expressed as a percentage.
Suggested Point Value: The cash value of a single point to your business when a customer redeems a reward.

How It's Calculated

Your true EDR is calculated as a simple fraction: Unit Cost of Free Item ÷ Total Customer Spend.

For Example

Your Retail Price: €4.00 for a coffee
Reward Cycle: Based on an average 9-visit reward cycle, a customer spends €36.00 to accumulate 36 points (9 visits × €4.00 retail price)
Your Cost for the Free Reward: €1.00 in variable ingredients (for the single free coffee given away)
The True Cash Impact: Dividing your €1.00 reward cost by the €36.00 total spend results in a 2.8% true discount rate.

This means each point costs you just 2.8c to fulfill, but required the customer to spend a full €1.00 to earn.

Industry EDR Benchmarks

To protect your bottom line, aim for a target Effective Discount Rate (EDR) that fits your industry: 1.5% for retail to cover inventory replacement costs, 1.5% to 2% for salons to guard service hours, 3% to 4% for cafes using low-cost ingredients, or 4% to 5% for saunas utilizing empty time slots.

4Safe Reward Cycle Options

Review alternative setup choices below to see how changing your reward cycles directly shapes your overall margin and true EDR.

Keep in MindThe milestone figures above are averages, not a fixed stamp-card count - some customers will take more visits, some fewer. Customers also tend to elevate their spending on other items to reach a milestone sooner, which typically means margins end up even more generous than these numbers suggest.

Margin Calculator

Protect Your Bottom Line