Markdown Calculator

Compute markdown amount, markdown percent, sale price, and final price with optional sales tax.

$
Enter percent off of original price (e.g., 20%).
%
$
%

Results

  • Markdown Amount $
  • Markdown % %
  • Sale Price $
  • Final Price incl. Tax $
  • Total Savings % (after tax) %

The Markdown Calculator helps you find the discounted price, markdown percentage, and savings after tax based on an item’s original price. It supports two modes — by Markdown % or by Sale Price — so you can calculate discounts or verify price reductions accurately.

Introduction

This tool determines how much an item is reduced from its Original Price using either a Markdown % or a known Sale Price. It also factors in Sales Tax % applied to the sale price.

The markdown percentage is defined as:

Conversely, the sale price can be found by:

Final price with tax adds:

How to Use the Markdown Calculator

Follow these steps to calculate markdowns and sale prices.

  1. Enter the Original Price

    The item's pre-discount amount (e.g., $100).

  2. Select Input Mode

    Choose Markdown % to apply a discount rate or Sale Price to compute the markdown backward.

  3. Enter Markdown % or Sale Price

    Depending on your chosen mode.

  4. Add Sales Tax %

    If tax applies to the discounted price. Set to 0 for no tax.

  5. Toggle Show Decimals

    To view rounded or detailed results.

  6. Click Calculate

    The calculator displays Markdown Amount, Markdown %, Sale Price, Final Price incl. Tax, and Total Savings %.

  7. Review results

    Use the displayed formulas to verify discount accuracy.

Frequently Asked Questions

Methodology & Sources

This calculator computes discounted prices and markdown percentages for retail and commerce use. It supports two modes:

  1. Markdown % Mode: Calculates sale price from a given markdown percentage.
  2. Sale Price Mode: Calculates markdown percentage from a given sale price.

Core Formulas

    1. Markdown Amount

where:

M = markdown amount,

P0 = original price,

r= markdown rate (%).

    1. Sale Price

or equivalently,

    1. Markdown Percentage (reverse mode)

    1. Final Price with Tax

where \( t \) = sales tax rate (%).

    1. Total Savings after Tax

Assumptions

  • Prices are in USD.
  • Taxes apply after markdown.
  • All inputs are ≥ 0.
  • Results rounded to two decimal places.

Example

Given:

  • Original Price = $100
  • Markdown % = 20
  • Sales Tax % = 0

Then:

  • Markdown Amount = $20
  • Sale Price = $80
  • Final Price (incl. tax) = $80
  • Savings = 20%

Edge Cases

  • Markdown % = 0 → no discount.
  • Markdown % = 100 → sale price = $0.
  • Negative prices or rates → invalid input.

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