Net Profit Margin Calculator
Bottom-line margin.
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Business
Markdown Calculator
Find the markdown percentage between an original and a sale price.
Markdown
—
Percent off.
| Amount off | — |
|---|---|
| Original | — |
| Sale | — |
| — |
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How the Markdown Calculator Works
A markdown is the percentage a price has been reduced. Subtract the sale price from the original, then divide by the original. Cutting an $80 item to $60 is a $20 markdown — 25% off. Retailers use markdown percentages to plan clearance and measure how deeply they’re discounting.
Markdown is figured on the original price, which is what makes a “25% off” sign meaningful. It’s the reverse of a discount calculation: here you know both prices and want the percent between them.
markdown % = (original price − sale price) ÷ original price
Frequently Asked Questions
How do you calculate markdown percentage?
Subtract the sale price from the original price, divide by the original price, and multiply by 100.
Is markdown the same as margin?
No — markdown is the price reduction off the original. Margin is profit as a share of the selling price. They measure different things.
Is markdown based on the original or sale price?
The original price. That’s what makes a stated percentage off comparable across items.
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