Find the markdown percentage and new price when lowering a retail price.
Please do not make financial decisions based on these results.
What is the Markdown Calculator?
Find the markdown percentage and new price when lowering a retail price. To use the Markdown Calculator, enter old price, new price, unit cost; it returns markdown percentage, margin after markdown, profit per unit, and shows them instantly as you type.
Where the Markdown Calculator fits
Find the markdown percentage and new price when lowering a retail price. The main figure it returns is the Markdown percentage, worked out from the values you enter.
It belongs with the other sales, discounts & pricing tools. If you are comparing options or checking a result from another angle, try the Percentage Discount Calculator, Markup Calculator Classic or the Margin Calculator Classic.
How to use the Markdown Calculator
- Fill in the fields. You will need Old price ($), New price ($), Unit cost ($). Use real figures from your own records where you can. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Markdown percentage, and the cards below show Margin after markdown, Profit per unit. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Markdown Calculator using the default values shown in the calculator above:
Inputs
| Old price ($) | 90 |
|---|---|
| New price ($) | 63 |
| Unit cost ($) | 40 |
Results
| Markdown percentage | 30% |
|---|---|
| Margin after markdown | 36.51% |
| Profit per unit | $23.00 |
With these inputs the calculator returns Markdown percentage: 30%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Old price ($) from 90 to 108 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Markdown percentage | 30% | 41.67% | +38.9% |
| Margin after markdown | 36.51% | 36.51% | 0% |
| Profit per unit | $23.00 | $23.00 | 0% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Markdown Calculator reports Markdown percentage, margin after markdown and profit per unit. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
How is markdown different from markup?
Markdown lowers a price; markup raises it above cost.
Is 20% plus 10% off the same as 30% off?
No. The second discount applies to the reduced price, so the total is 28% off.
How do I convert markup to margin?
Margin equals markup divided by one plus markup. A 60% markup is a 37.5% margin.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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