Markdown Calculator

Instantly find your markdown amount, sale price, and total savings — with or without sales tax — using the Markdown Calculator.

By CalcMastery Team

Markdown Calculator

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

$

List price before any markdown.

%

Percent reduction from original price.

$

Final price after markdown.

%

Applied to sale price to compute final price with tax.

Results

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

Enter your inputs above to calculate the results.

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:

Markdown% = (Original Price − Sale Price) / Original Price × 100

Conversely, the sale price can be found by:

Sale Price = Original Price × (1 − Markdown% / 100)

Final price with tax adds:

Final Price incl. Tax = Sale Price × (1 + Sales Tax% / 100)

How to Use the Markdown Calculator

Follow these steps to calculate markdowns and sale prices.

Enter the Original Price

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

Select Input Mode

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

Enter Markdown % or Sale Price

Depending on your chosen mode.

Add Sales Tax %

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

Toggle Show Decimals

To view rounded or detailed results.

Click Calculate

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

Review results

Use the displayed formulas to verify discount accuracy.

Frequently Asked Questions

What is a Markdown Calculator?

A Markdown Calculator determines the sale price and discount amount when an item is marked down from its original price. It can also reverse-calculate the markdown percentage when the sale price is known.

How do I calculate the markdown amount?

Multiply the original price by the markdown percentage:

Markdown Amount = Original Price × (Markdown% / 100)
How do I find the sale price after a markdown?

Subtract the markdown amount from the original price: Sale Price = Original Price - Markdown Amount

What’s the difference between Markdown % and Sale Price mode?

Markdown % mode calculates sale price based on the percentage off. Sale Price mode computes the markdown percentage from the final sale price.

Does the markdown include sales tax?

No. Sales tax is applied after the markdown to the sale price. You can enter a Sales Tax % to find the total price after tax.

What are common edge cases?

Ensure inputs are non-negative and that Markdown % ≤ 100%. A markdown over 100% or a sale price below $0 is not defined.

Can this calculator handle decimals?

Yes. You can toggle “Show decimals” for precise results, especially useful when calculating fractional discounts or tax rates.

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
M = P0 × r / 100

where:

M = markdown amount,

P0 = original price,

r= markdown rate (%).

    1. Sale Price
Ps = P0 − M

or equivalently,

Ps = P0 × (1 − r / 100)
    1. Markdown Percentage (reverse mode)
r = ((P0 − Ps)) / P0 × 100
    1. Final Price with Tax
Pf = Ps × (1 + t / 100)

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

    1. Total Savings after Tax
Savings% = ((P0 − Pf)) / P0 × 100

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.