Business

Markdown Calculator

Sale price, markdown percent and remaining margin in one view.

Enter your values

Results update instantly as you type — no submit needed.

Results
Sale price
$60.00
You save
$20.00
Gross profit per unit
$20.00
Margin after markdown
33.33 %
Break-even markdown
50 %

Working

  1. 1$80.00 × (1 − 25%) = $60.00

Quick answer

Markdown % = (original price − sale price) ÷ original price × 100. A $80 item marked down to $60 carries a 25% markdown.

Sale price = original × (1 − markdown %)

How to use the Markdown Calculator

  1. 1Enter the original price and markdown percent.
  2. 2Add unit cost to see the margin you keep.
  3. 3Compare with the break-even markdown.

Frequently asked questions

What is the difference between markdown and margin?

Markdown is the discount off the retail price. Margin is the profit left as a share of the selling price. A 25% markdown can wipe out far more than 25% of margin.

How do you calculate markdown percentage?

Subtract the sale price from the original, divide by the original and multiply by 100.