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Markdown Percentage Calculator

Work out markdown percentage instantly with clear inputs, formula shown and shareable results.

About Markdown Percentage Calculator

A markdown percentage is measured against the original price, but its damage is measured in margin points. A 30% markdown on a 52% margin item leaves about 32% margin — which is why markdown planning and initial markup are inseparable decisions.

Formulas

Markdown percentage

Markdown % = (Original price - Markdown price) / Original price x 100

Margin after markdown

Margin % = (Markdown price - Cost) / Markdown price x 100

Worked example

With the default values below, Markdown Percentage Calculator returns Markdown percentage of 30.00%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Original retail price
2,400
Marked-down price
1,680
Unit cost
1,150
Units sold at the marked-down price
340

Results

Markdown percentage
30.00%
Gross margin after markdown
31.55%
Margin points lost
20.54%
Total markdown value taken
$244,800.00

Step by step

  1. 1Values used
  2. 2Markdown percentage
  3. 3Margin after markdown
  4. 4Markdown percentage= 30.00
  5. 5Gross margin after markdown= 31.55
  6. 6Margin points lost= 20.54
  7. 7Total markdown value taken= 244,800.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Is a deeper markdown always worse?

Not if it clears stock before it becomes unsaleable. The alternative to a 40% markdown is often a 100% write-off.

What is markdown cadence?

A planned sequence of reductions — commonly 20%, then 30%, then 50% — timed to sell-through so that the last units clear before season end.

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