Clearance Markdown Calculator
Compare against holding cost, not the original price.
Cash recovered
$9,744
336 units at $29.00
Still above cost at $11.00 per unit, and clearing avoids $864 of storage. Clearance decisions should compare against holding cost, not against the original price, that money is already spent.
How the Clearance Markdown Calculator works
Clearance decisions should compare against holding cost, not against the original price, that money is already spent. Selling below cost is frequently correct when the alternative is storing stock that will not improve with age.
Also known as: clearance pricing calculator · how much to mark down · end of line pricing
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price, check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How deep should a markdown be?
Deep enough to clear within a defined window. A shallow markdown that clears a fifth of the stock leaves you making the same decision again in three months, having paid three months of storage.
Should I ever sell below cost?
Yes, when the alternative is holding it indefinitely. The cost is sunk; the only live question is which route recovers most cash net of the storage avoided.
Does clearance damage the brand?
Repeated, visible clearance does. A dedicated outlet channel or a private sale limits the exposure while still moving the stock.
When should I mark down?
Earlier than feels comfortable. Stock loses value with age in nearly every category, and the first markdown is always cheaper than the third.