Update — Added Woocommerce 3 compatibility.
Here is something that should be convenient to your requirements.
This function will add discount to cart:
add_action( 'woocommerce_cart_calculate_fees','custom_cart_discount', 20, 1 );
function custom_cart_discount( $cart ) {
if ( is_admin() && ! defined( 'DOING_AJAX' ) )
return;
// Define HERE your targeted product category (id, slug or name are accepted)
$category = 'posters';
// Set the price for Five HERE
$price_x5 = 5;
// initializing variables
$calculated_qty = 0;
$calculated_total = 0;
$discount = 0;
// Iterating through each cart item
foreach($cart->get_cart() as $cart_item):
// Make this discount calculations only for products of your targeted category
if(has_term($category, 'product_cat', $cart_item['product_id'])):
$item_price = version_compare( WC_VERSION, '3.0', '<' ) ? $cart_item['data']->price : $cart_item['data']->get_price(); // The price for one (assuming that there is always 2.99)
$item_qty = $cart_item["quantity"];// Quantity
$item_line_total = $cart_item["line_total"]; // Item total price (price x quantity)
$calculated_qty += $item_qty; // ctotal number of items in cart
$calculated_total += $item_line_total; // calculated total items amount
endif;
endforeach;
// ## CALCULATIONS (updated) ##
if($calculated_qty >= 5):
for($j = 5, $k=0; $j <= $calculated_qty; $j+=5,$k++); // Update $k=0 (instead of $k=1)
$qty_modulo = $calculated_qty % 5;
$calculation = ( $k * $price_x5 ) + ($qty_modulo * $item_price);
$discount -= $calculated_total - $calculation;
endif;
// Adding the discount
if ($discount != 0)
$cart->add_fee( __( 'Quantity discount', 'woocommerce' ), $discount, false );
// Note: Last argument in add_fee() method is related to applying the tax or not to the discount (true or false)
}
Code goes in function.php file of your active child theme (or active theme). Tested and works.