Salesforce CPQ+ Edition allows you to set up discounts using a variety of methods:
A Compound Discount is a discount method, expressed as a percentage, that calculates the discount on a product based on the quantity. It functions as a linear discount that increases with each additional unit (e.g. numeric quantity entered into the Line Editor). Unlike Discount Schedules, where admins configure tiers and discount at each tier level, Compound Discounts automatically calculate the discount for any given quantity.
You have a Wireless Router priced at $100 per unit, with a Compound Discount of 25%:
A Quote Line with a quantity of 5 Wireless Routers would be priced as follows:
The $66.87 per unit total was calculated by placing the quantity of 5 and compound rate of 25% into the Compound Discount formula:
(1 / (5 ^ (25/100))) = .6687 * $100 per Router = $66.87.