Markdown Calculator
Calculate price markdowns, discounts, and price reductions for retail pricing strategies
Calculate Price Markdown
Choose the calculation method based on available data
The initial selling price before markdown
The percentage price reduction
Markdown Results
Calculation Details
Formula: Markdown Amount = Original Price - Actual Price
Percentage: ($0.00 ÷ $0.00) × 100 = 0.00%
Customer Saves: $0.00
Business Impact Analysis
Example Calculation
Retail Markdown Example
Product: Winter jacket end-of-season clearance
Original Price: $120.00
Markdown Percentage: 30%
Target Final Price: $84.00
Calculation
Markdown Amount = $120.00 × 30% = $36.00
Final Price = $120.00 - $36.00 = $84.00
Customer Saves: $36.00 (30%)
Markdown vs Discount
Markdown
- • Permanent price reduction
- • Available to all customers
- • Due to overstock/seasonality
Discount
- • Temporary price reduction
- • For specific customer groups
- • Promotional/loyalty based
Pricing Tips
Plan markdowns strategically around seasons
Start with smaller markdowns, increase gradually
Calculate minimum acceptable margins
Present as savings, not desperate clearances
Understanding Markdown Calculations
What is a Markdown?
A markdown is a permanent price reduction applied to products to increase sales velocity, clear inventory, or respond to market conditions. Unlike discounts, markdowns are typically available to all customers and represent a new selling price.
Why Use Markdowns?
- •Clear slow-moving or seasonal inventory
- •Improve cash flow and reduce storage costs
- •Compete with market pricing
- •Make room for new merchandise
Key Formulas
Basic Markdown
Markdown Amount = Original Price - Final Price
Markdown Percentage
Markdown % = (Markdown Amount ÷ Original Price) × 100
Final Price from %
Final Price = Original Price × (1 - Markdown%/100)
Note: Always ensure markdowns maintain acceptable profit margins