📉 Markdown Calculator
Calculate markdown percentage
How to Use This Calculator
Enter Original Price
Input the original price of the item before the markdown.
Enter Sale Price
Enter the sale price - the reduced price after markdown. This must be less than or equal to the original price.
Review Markdown
See the markdown amount and markdown percentage. Use this to understand price reductions and plan markdown strategies.
Formula
Markdown Amount = Original Price - Sale Price
Markdown Percentage = (Markdown Amount / Original Price) × 100
Example Calculation:
If original price $100, sale price $80:
• Markdown amount = $100 - $80 = $20
• Markdown percentage = ($20 / $100) × 100 = 20%
About Markdown Calculator
A markdown calculator helps you calculate the markdown amount and percentage when reducing prices. Markdown is the reduction in the selling price of an item, typically used in retail to clear inventory, attract customers, or respond to market conditions. This calculator helps you determine the markdown percentage based on the original price and the reduced sale price, making it easier to plan pricing strategies and understand price reductions.
When to Use This Calculator
- Price Reduction: Calculate markdown percentages for price reductions
- Inventory Clearance: Plan markdowns for clearing inventory
- Sales Planning: Plan markdown strategies for sales events
- Pricing Analysis: Analyze markdown impact on pricing
Understanding Markdowns
- Markdown vs Discount: Markdown is a price reduction, similar to discount
- Retail Use: Commonly used in retail for price reductions
- Profit Impact: Markdowns reduce profit margins
- Strategic Use: Use markdowns strategically to drive sales
Why Use Our Calculator?
- ✅ Markdown Calculation: Calculate markdown percentages accurately
- ✅ Price Planning: Plan markdown strategies
- ✅ Inventory Management: Plan markdowns for inventory clearance
- ✅ Sales Analysis: Analyze markdown impact
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is markdown?
Markdown is the reduction in the selling price of an item, typically expressed as a percentage. Markdown is commonly used in retail to reduce prices for sales, clear inventory, or respond to market conditions. For example, if an item originally costs $100 and is marked down to $80, the markdown is $20 (20% markdown).
What's the difference between markdown and discount?
Markdown and discount are similar concepts - both refer to price reductions. Markdown is more commonly used in retail contexts, while discount is more general. Both are calculated the same way: (Original Price - Sale Price) / Original Price × 100. The terms are often used interchangeably, though markdown may imply a permanent price reduction, while discount may imply a temporary promotion.
How do I calculate markdown percentage?
To calculate markdown percentage: (1) Calculate markdown amount = Original Price - Sale Price, (2) Calculate markdown percentage = (Markdown Amount / Original Price) × 100. For example, with original price $100 and sale price $80: Markdown = $20, Markdown% = 20%. This calculator does the calculation for you - just enter the original and sale prices.
Why do retailers use markdowns?
Retailers use markdowns for several reasons: (1) Clear inventory (move slow-selling items), (2) Attract customers (drive foot traffic and sales), (3) Compete with competitors, (4) Seasonal changes (clear seasonal inventory), (5) Respond to market conditions. Markdowns reduce profit margins but can increase sales volume and cash flow.