Markdown Calculator

Your details

Standard solves for sale price. Reverse solves for the original price. Successive chains multiple percentage cuts. Margin mode adds cost to show gross profit before and after.
The regular or list price before the markdown is applied.
$
The percentage reduction from the original price.
%
Sale priceModerate markdown
60$

Price after the markdown is applied

Dollar savings20$
Effective markdown0.3%
Sale price60
Savings20

Sale price: $60.00 (25.0% off)

  • A 25.0% markdown on a $80.00 item saves the buyer $20.00, bringing the price to $60.00.
  • Markdowns under 30% are common promotional discounts and are generally sustainable if the gross margin remains positive.
  • Remember: markdown and markup are not the same. Markup is calculated on cost; markdown is calculated on the selling price.

Next stepTo find the markup percentage you need on cost before applying a markdown, use the markup calculator alongside this one.

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