Markdown Calculator

Easily calculate markdown percentages to find out the sale price of any item, or enter a sale price to find the markdown percentage.

How to Calculate a Markdown Price

Markdown pricing is the reduction from the original price of a product, usually to stimulate sales. You can calculate the markdown price using a simple formula:

Formula: Sale Price = Original Price - (Original Price * Markdown Percentage / 100)

For example, if an item originally costs $100 and the markdown percentage is 20%, the sale price will be:

Sale Price = 100 - (100 * 20 / 100) = $80

Why Markdown Pricing Matters

Markdown pricing is crucial for businesses to attract customers, clear out excess inventory, and boost sales. Consumers benefit from markdowns by getting products at a reduced cost, and businesses can generate revenue from unsold items.

Frequently Asked Questions

What is the typical markdown percentage? It depends on the industry and the product type, but common markdown percentages range from 10% to 50%.

Can markdown pricing increase profitability? Yes, in certain cases, reducing prices can increase sales volume, ultimately leading to more revenue.