Markdown Calculator

Quick answer

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.

$
%
$
Sale price
$ —
Markdown amount
$ —
Profit at the sale price
$ —
Margin at the sale price
— %

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

  1. Original price
  2. Markdown
  3. Cost (optional)
  4. 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

Field What to enter
Original price Amount in your currency
Markdown In %
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 price
15 102
22.5 93
30 84
37.5 75
45 66
60 48

Formula

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

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 %.

Frequently asked questions

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 %).

Cite this calculator

Speedy Calculator. (2026). Markdown Calculator. Speedy Calculator. https://speedycalculator.com/calculators/finance/markdown/