Markdown Calculator
From the original price and the current price, work out how much was marked down and the markdown percentage (discount).
Input Data
Results
At a glance:A markdown is a reduction from the original price. Markdown amount = original price − current price; markdown percent = markdown amount ÷ original price × 100.
Formula
Markdown amount = original price − current price.
Markdown percent = markdown amount ÷ original price × 100.
$$\text{Markdown} = P_{\text{orig}} - P_{\text{cur}}$$$$\text{Markdown \%} = \dfrac{P_{\text{orig}} - P_{\text{cur}}}{P_{\text{orig}}} \times 100\%$$How to Use
- Enter the original listed price.
- Enter the current sale price.
- Read the markdown amount and percentage.
FAQ
What is the difference between markdown and discount?
They are the same price reduction seen from opposite directions. A discount calculator works forward — given the original price and a discount rate, it works out the sale price. A markdown calculator works backward — given the original price and the current price, it works out the percentage reduced. If you want to compute the sale price from a discount rate, use the Discount Calculator; to verify what 'discount' a current price represents, use this tool.
Is a 25% markdown the same as a '25% off'?
Yes. A 25% markdown means the price was cut by 25% of the original, so the markdown percent shown here is exactly that. To express it as a Hong Kong-style 'pay X%' figure, subtract the markdown from 100% — a 25% markdown means paying 75%, i.e. a '25%-off' in local terms.
What happens if the current price is higher than the original price?
That means a price increase, not a markdown, and the tool shows a negative markdown percent. For example, original 100 and current 120 gives a markdown of −20%, i.e. a 20% increase. If you see a negative markdown while checking a promotion, be wary that the so-called 'discount' may be misleading.
What is the difference between markdown, discount and markup?
Markdown and discount are the same operation — both reduce the price from the original, with the original price as the denominator — just in opposite directions (discount: given the rate, find the sale price; markdown: given both prices, find the rate). Markup is a different concept entirely: its denominator is the cost, and it goes upward. A 50% markup on a HK$80 cost gives a HK$120 price, where the 50% is relative to cost, not price. That is why markup percentage is always higher than the gross margin for the same deal. Use the Markup Calculator and the Discount Calculator alongside this one.
Why do retailers mark down prices, and how much markdown is reasonable?
Retailers mark down mainly to clear slow or seasonal stock, free up shelf and warehouse space, and recover cash tied up in inventory; to drive foot traffic and boost related sales; or to match competitors and seasonal events. How much to mark down is a trade-off: too little may not move the goods, too much sacrifices margin. A reasonable markdown depends on the product's cost and margin headroom, how urgent the clearance is, competitor pricing, and whether the extra volume makes up for the lower unit margin. As a shopper, the real test is whether the 'original price' is genuine — the markdown you compute from the true usual price and the current price is the real saving; an inflated 'original' can make a big markdown look better than it is.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.