Free List Price Markdown Calculator
Enter the original list price and sale price to calculate the markdown amount, markdown percentage, and total savings.
The original retail or list price before markdown
The reduced price customers pay after markdown
Enter original and marked price to see your results
Need to invoice with discounts?
Eonebill lets you apply discounts to client invoices automatically.
How to Calculate Markdown from List Price
A markdown is a reduction from an original list price to a lower sale price. Retailers use markdowns to clear inventory, respond to demand, or move seasonal products while tracking how much revenue is given up per item.
First calculate the markdown amount: List Price − Sale Price. Then calculate the markdown rate: Markdown Amount ÷ List Price × 100. A $150 item reduced to $90 has a $60 markdown and a 40% markdown rate.
Retailers strategically time markdowns to balance inventory turnover against margin preservation. Early markdowns are smaller (10-20%) to test price sensitivity. End-of-season markdowns can reach 50-70% to ensure full clearance.
The key difference between markdown and discount: a discount is typically a temporary promotion available to specific customers or for a limited time, while a markdown changes the advertised product price for the selected selling period.
List price markdown examples
| Original list price | Sale price | Markdown amount | Markdown rate |
|---|---|---|---|
| $100 | $80 | $20 | 20% |
| $150 | $90 | $60 | 40% |
| $250 | $175 | $75 | 30% |
Frequently Asked Questions
Subtract the sale price from the original list price to get the markdown amount. Then divide the markdown amount by the original list price and multiply by 100. For a $150 list price reduced to $90, the markdown is $60 and the markdown rate is 40%.
To calculate percent off, multiply the original price by the discount percentage divided by 100, then subtract from the original price. Formula: Discount Amount = Original Price × (Discount % / 100). Final Price = Original Price − Discount Amount.
To find the original price when you know the discounted price and discount percentage, use: Original Price = Discounted Price ÷ (1 − Discount % / 100). For example, if something costs $80 after a 20% discount: $80 ÷ 0.80 = $100 original price.
A stacked discount (also called stacked discount or chain discount) is when multiple discounts are applied one after another to a single item. For example, a 20% discount followed by a 15% discount on the reduced price. Unlike simple discounts, stacked discounts compound: 20% off $100 = $80, then 15% off $80 = $68, not $65.
To calculate discount with sales tax: first apply the discount to get the pre-tax price, then multiply by (1 + tax rate) to get the final amount. For example, $100 item, 20% off = $80, then 8% tax: $80 × 1.08 = $86.40 total.
Buy One Get One (BOGO) Free means you pay for one item but receive two. The effective discount is 50% per item. Calculate the per-item cost by dividing the price of one item by 2. For BOGO 50% Off (you pay full price for one, half off the second), the average discount is 25% per item.
More Free Tools for Freelancers
Need to invoice with discounts?
Try Eonebill — create professional invoices with automatic discount calculations.
Get Started Free →