Business

Markdown Calculator

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

Enter your values

ⓘ Live results

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.

Worked example

Using the values the calculator loads with:

Inputs

  • Original price80 $
  • Markdown percentage25 %
  • Unit cost (optional, for margin)40 $

Results

  • Sale price$60.00
  • You save$20.00
  • Gross profit per unit$20.00
  • Margin after markdown33.33 %
  • Break-even markdown50 %
  1. $80.00 × (1 − 25%) = $60.00

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.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.