Discount

A discount is the object Stripe creates when you apply a coupon to a customer, subscription, or invoice. The coupon holds the rule, such as 10% off or $5 off. The discount records that rule on one specific object, with its start and end dates.

How discounts work in Stripe

When you attach a coupon, Stripe adds a discount to the target and lowers the amount due on each affected invoice.

• A percentage discount takes a share off the subtotal, for example 20% off a $100 plan.
• An amount discount subtracts a fixed value, for example $10 off in the invoice's currency.
• The coupon's duration sets how long it lasts: once, repeating (a set number of months), or forever.

A discount on a subscription applies at each renewal until its duration ends. When a customer redeems a promotion code, Stripe also creates a discount.

Why discounts matter for revenue

Discounts lower what a customer pays, so they lower your revenue and your MRR. A subscriber on a permanent 25% discount brings in 25% less MRR than the list price. When a repeating discount expires, that customer's MRR goes up.

Nothing flags a discount on the invoice beyond a lower total, so they are easy to lose track of. Track active discounts and their end dates so you know which month MRR will rise as promotions expire.