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Price Markdown Calculator

Markdown depth, recovery and margin left.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these
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Markdown price

$39.00

35.0% off

Margin at markdown38.5%
Profit per unit$15.00
Cash released if all sell$3,120
Cost recovered162.5%

One decisive markdown usually clears stock better than a series of shallow ones, which train buyers to wait.

How the Price Markdown Calculator works

Markdowns are a stock problem, not a pricing problem. The question is never simply how much to take off — it is whether the cash released and the storage freed beat holding out for a better price that may never arrive.

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 is markdown percentage calculated?

(Original price − markdown price) ÷ original price × 100. From £60 to £39 is a 35% markdown. Note this differs from markdown as a share of the reduced price, which some retail systems report instead.

How deep should the first markdown be?

Deep enough to move stock. Retail experience favours one decisive cut over a series of shallow ones — repeated small reductions train buyers to wait, and the stock ages while they do.

When should I mark down?

Once sell-through falls behind the rate needed to clear before the stock loses relevance. Seasonal goods have a hard deadline; the cost of holding past it usually exceeds the margin you were protecting.

Should I mark down below cost?

Sometimes, yes. Money tied up in stock that will not sell is worth less than cash you can redeploy, and storage costs accrue. Recovering 60% of cost now often beats 0% indefinitely.