# Markdown Calculator

URL: https://speedycalculator.com/calculators/finance/markdown/
Last updated: 2026-10-25

> The markdown calculator works out a markdown on a retail price – the sale price from a markdown percentage, or the markdown percentage from the original and sale prices – and the amount taken off.

## Inputs

- Original price
- Markdown (%)
- Cost (optional)

## Results

- Sale price
- Markdown amount
- Profit at the sale price
- Margin at the sale price

## Formula

```
Sale price = original × (1 − markdown %)
Markdown % = (original − sale price) ÷ original × 100
Markdown amount = original − sale price
```

## Explanation

Retailers mark down slow-moving stock to clear shelves. Markdowns are applied to the selling price, not the cost, so a big markdown can push a product below cost.

### How to use the Markdown Calculator

- **Original price**
- **Markdown**
- **Cost (optional)**
- Every result field is editable: type into **Sale price** and **Markdown** plus every other field update to match.

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the original price and the markdown percentage – or type the sale price into the result.

### Tips

- Know the difference between margin (profit ÷ price) and markup (profit ÷ cost).
- Apply successive discounts one after another – they do not simply add up.
- Check whether prices already include sales tax or VAT.
- Round prices only at the very end of the calculation.

### Common mistakes to avoid

- Adding discount percentages together.
- Pricing from a target margin using the markup formula.
- Forgetting payment-processing and shipping fees.

### Inputs explained

FieldWhat to enterOriginal priceAmount in your currencyMarkdownIn %Cost (optional)Amount in your currency

### What each result means

- **Sale price** = [Original price]×(1 - [Markdown]÷100)
- **Markdown amount** = [Original price] - [Sale price]
- **Profit at the sale price** = [Sale price] - [Cost (optional)]
- **Margin at the sale price** = ([Sale price] - [Cost (optional)])÷[Sale price]×100

### Example values

How the main result changes when **Markdown** changes and everything else stays at the example values above:

Markdown (%)Sale price1510222.593308437.57545666048

## Worked example

Inputs — Original price: $120; Markdown: 30 %; Cost (optional): $70.

Results — **Sale price = $84.00**; Markdown amount = $36.00; Profit at the sale price = $14.00; Margin at the sale price = 16.67 %.

## FAQ

**What is a markdown?**
A reduction from the original selling price.

**How is markdown different from a discount?**
Markdowns are permanent price cuts; discounts are often conditional or temporary.

**Markdown vs markup?**
Markup is added to cost; markdown is taken off the price.

**What formula does the Markdown Calculator use?**
Sale price = original × (1 − markdown %).