Understanding Retail Markdown Percentage
How we calculate. Markdown % = (original − sale) ÷ original × 100. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.
Real-world scenario: A typical Retail Markdown Percentage case uses original price 80 and sale price 60. Enter the same figures below to reproduce the worked path.
What is Retail Markdown Percentage?
A pricing KPI for promotions and clearance. Distinct from business discount calculators when you need retail ticket-to-sale framing, and from gross margin %.
- Original = ticket / compare-at price
- Sale = selling price after markdown
- Same currency
The Formula
Worked Example
Common Use Cases
- Clearance signs: % off ticket
- Promo calendars: markdown depth
- Margin reviews: price cut impact
Pro Tips
- Don’t confuse with gross margin %
- State compare-at vs cost basis
- Pair with sell-through
Limitations: Retail Markdown Percentage results are educational retail merchandising aids—not accounting, tax, or inventory-system advice. Confirm definitions with your POS, ERP, and brand reporting standards.
FAQ
Same as gross margin?
No. Gross margin is (sales − COGS) ÷ sales. Markdown is (original − sale) ÷ original price.
What if original price is 0?
Markdown % is undefined—enter a positive original price.
Authoritative References
For retail merchandising and store performance concepts, consult:
- National Retail Federation — retail industry context
- Retail Council — retail operations resources
- Shopify Blog — ecommerce and retail KPI explainers