Calculate markdown percentage, sale price, or original price for any discount. Find the amount off, the percent off, and what you will actually pay.
Use this markdown calculator to work out the relationship between original price, sale price, and markdown amount for any discount, sale, or clearance price. Enter any two values and the calculator finds the third, along with the markdown percentage and the price you actually pay as a share of the original price.
A markdown is the opposite of a markup: instead of adding profit on top of a cost, you are reducing an existing list price down to a lower sale price. It is the calculation behind every “% off” sign, clearance sticker, and seasonal sale.
Markdown percentage is always measured against the original price, never the sale price — that distinction matters, because the markup needed to reverse a markdown back to the original price is not the same percentage. For the reverse calculation, building a selling price up from cost, see the markup calculator.
Markdown Formula and Example
The core relationships are Markdown = Original price − Sale price and Markdown % = Markdown ÷ Original price × 100. For example, an item with an original price of $50 marked down to a sale price of $40 has a markdown of $10, which is a 20% markdown — meaning you pay 80% of the original price.
Markdown vs. Markup: Why the Percentages Differ
Reversing a markdown does not take the same percentage markup. A 20% markdown from $50 to $40 needs a 25% markup to get back from $40 to $50, because markup is calculated on the lower price while markdown is calculated on the higher one. The two percentages only stay close at small discount levels and diverge quickly beyond that, as the table below shows.
Markdown to Markup Conversion Table
| Markdown % | Markup needed to reverse it |
|---|
| 10% | 11.11% |
| 15% | 17.65% |
| 20% | 25.00% |
| 25% | 33.33% |
| 30% | 42.86% |
| 33.33% | 50.00% |
| 40% | 66.67% |
| 50% | 100.00% |
| 60% | 150.00% |
| 66.67% | 200.00% |
| 75% | 300.00% |
| 80% | 400.00% |
To convert a markdown to the markup that reverses it: markup = markdown ÷ (1 − markdown). To convert a markup to the markdown it is equivalent to: markdown = markup ÷ (1 + markup), using each rate as a decimal. Use the calculator above for any rate not listed here.
Markdown Calculator Formula
Result
Markdown Percentage (MD%) | 20.00% |
|---|
| Price Paid (% of Original) | 80.00% |
|---|
Markdown Calculator FAQ
What does a markdown calculator do?
A markdown calculator helps you move between original price, sale price, and markdown amount. If you know any two of those values, you can calculate the third and also see the corresponding markdown percentage and the price paid as a share of the original price.
What is the difference between markdown and markup?
A markdown is a percentage reduction measured against the original price. A markup is a percentage increase measured against the cost. Because the two use different starting points, a markdown and the markup that reverses it are never the same percentage.
How do I calculate sale price from original price and markdown?
Subtract the markdown amount from the original price: sale price = original price − markdown. If you are starting from a markdown percentage, first convert it into an amount based on the original price: markdown amount = original price × markdown %.
Why doesn’t a 20% markdown reverse with a 20% markup?
Markdown is calculated on the original (higher) price, while the markup needed to reverse it is calculated on the sale (lower) price. A $50 item marked down 20% to $40 needs a 25% markup on $40 to get back to $50, not 20%.
How do you calculate markdown percentage?
Markdown percentage is (original price − sale price) ÷ original price × 100. For example, a $50 item marked down to $40 has a $10 markdown, which is a 20% markdown off the original price.
What formula does this markdown calculator use?
This calculator uses markdown = original price − sale price, markdown % = markdown / original price × 100, and price paid % = sale price / original price × 100. Those formulas connect original price, sale price, and the size of the discount.
Can I use this for any kind of discount or sale, not just retail?
Yes. The same markdown formula applies to clearance sales, seasonal discounts, coupon codes expressed as a percentage off, and any other situation where a price is reduced from a known starting point.
How do I convert a markdown percentage to the markup needed to reverse it?
Use markup = markdown ÷ (1 − markdown), with the markdown as a decimal. For example, a 20% markdown converts to a 25% markup (0.20 ÷ 0.80 = 0.25). To go the other way, use markdown = markup ÷ (1 + markup).
