Markdown Calculator: Retail Markdown and Margin
Mark down a retail price by a percent or to a new price and see the markdown %, money off per unit and on all stock, and the margin left on your cost.
Markdown price
55.99
Markdown %
30%
Markdown per unit
24
Total markdown
2,879.64
Margin before
52.5%
Margin after
32.1%
Markdown price = original × (1 − markdown ÷ 100); markdown % = (original − new) ÷ original × 100
How to calculate a markdown
A markdown is a permanent or seasonal cut in a retail price to sell slow or old stock. Unlike a customer discount, the retailer plans it: how deep to go, on how many units, and how much margin is left afterwards.
How to calculate a markdown
- Markdown price = original price × (1 − markdown % ÷ 100)
- Markdown % = (original − new price) ÷ original × 100
- Margin after = (new price − cost) ÷ new price × 100
Example: a jacket at 79.99 marked down 30% sells at 55.99. With a cost of 38, the margin falls from 52.5% to 32.1%. On 120 jackets in stock the markdown gives away 2,880 of revenue.
Markdown vs discount vs markup
| Term | Meaning |
|---|---|
| Markup | What you add to cost to set the price (markup calculator) |
| Markdown | A planned cut in your own retail price |
| Discount | A price cut at the till for a customer or a promotion (discount calculator) |
Plan markdowns before they plan you
Take a small first markdown early in the season (20 to 30%) while the item still sells, then deeper ones later. Keep the price above cost unless clearing space matters more than the money, and track total markdown as a share of sales.
Copy the result, or save it as a PDF to attach to an email or a report. Nothing you type leaves your browser.
Features
- By percent or by new price
- Markdown price and %
- Money off per unit and in total
- Margin before and after
- Warns when below cost
- Copy or PDF
Frequently asked questions
What is the markdown formula?
Markdown % = (original price − markdown price) ÷ original price × 100. A 60 item marked down to 45 is a 25% markdown.
Is markdown the same as discount?
Both lower the price. A markdown is the retailer's own planned cut on the ticket; a discount is usually given at the till, to a customer or for a promotion.
How deep should a markdown be?
Many retailers start at 20 to 30% and go to 50% or more for end of season clearance. Watch the margin after the markdown so you do not sell below cost by mistake.
Is the calculator free?
Yes. No sign up. It runs in your browser, and you can copy the result or save it as a PDF.