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Markdown Calculator
Calculate markdown percentage and dollar savings for any retail price reduction.
Inputs
Enter your numbers
$
$
Result
Your calculation
Markdown
33.34%
Dollar Markdown
$40.01
Original Price
$120.00
Markdown Price
$79.99
Formula Used
((Original Price − Markdown Price) ÷ Original Price) × 100
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Formula
((Original Price − Markdown Price) ÷ Original Price) × 100
Markdown percentage measures the depth of a price reduction relative to the original ticket price.
Worked Example
A coat was originally priced at $120 and is now $79.99. Markdown = ((120 − 79.99) ÷ 120) × 100 ≈ 33.3%. The dollar markdown per unit is $40.01.
Frequently Asked Questions
Is markdown the same as discount?+
They are used interchangeably in practice. Markdown is the more common retail term and is recorded against gross margin.
What is a typical markdown rate?+
Apparel and fashion typically run 15–25 percent. Specialty retail closer to 10 percent. Higher rates often signal over-buying.
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