Markdown Calculator
Calculate markdown amounts and percentages. Enter the original price and marked-down price to see how much you save.
The original retail price before markdown
The reduced sale price after markdown
Enter original and marked price to see your results
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What is a Markdown in Retail?
A markdown is a permanent reduction in the original retail price of a product. Unlike temporary promotions, markdowns are typically used to clear slow-moving inventory, respond to competitive pricing, or end a selling season.
Markdown rate is calculated as: Markdown Amount ÷ Original Price × 100. A 30% markdown on a $100 item means you pay $70 and save $30. The same 30% markdown on a $200 item saves you $60.
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 is a permanent price reduction applied to the general catalog price.
Frequently Asked Questions
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.
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