Markdown Calculator

$
Original price before discount
%
Discount % off original
Number of items (optional)
Finance

Calculate retail markdown (price reduction) and sale price. Markdown amount and percent off from original retail price.

Formula

Sale Price = Original Price × (1 − Markdown %) | Markdown $ = Original Price × Markdown %
  • Markdown is absolute discount from original retail price; commonly used in retail sales and clearance

Markdown

Inputs
  • Original Retail Price: 100 $
  • Markdown Percentage: 20 %
  • Quantity: 1

Original $100, 20% markdown = $20 off = $80 sale price

Frequently asked questions

Is markdown the same as margin?
No. Markdown is % off selling price; margin is profit % on cost.
How to calculate original from sale price?
Original = Sale Price ÷ (1 − Markdown %). E.g., $80 sale with 20% off = $80 ÷ 0.80 = $100 original.
What's the difference between markdown and clearance?
Markdown is planned discount; clearance is final mark-down to liquidate inventory quickly.