Markdown
Calculate the amount taken off when an item is marked down.
About Markdown
The markdown amount is the original price times the markdown rate, subtracted to leave the newly reduced selling price. Markdowns clear inventory and set new price points, and knowing the actual reduction helps shoppers judge the deal.
Formula
Markdown
Markdown price = original - original x markdown%
- markdown%
- Percent the retailer lowers the price
Worked example
With the default values below, Markdown returns Markdown Price of $37.50. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Original price
- 50
- Markdownaccepts 0–100 %
- 25 %
Results
- Markdown Price
- $37.50
- Markdown Amount
- $12.50
- Reduction
- 25.0%
Step by step
- 1Values used
- 2Markdown
- 3Markdown Price= 37.50
- 4Markdown Amount= 12.50
- 5Reduction= 25.0
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges 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
How is Markdown calculated?
Markdown price = original - original x markdown% The markdown amount is the original price times the markdown rate, subtracted to leave the newly reduced selling price.
Why does Markdown matter?
Markdowns clear inventory and set new price points, and knowing the actual reduction helps shoppers judge the deal.
What values do I need to enter?
This calculator takes 2 inputs: Original price, Markdown. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.