Markdown Calculator: What a Discount Really Costs
Enter your current price, cost and units sold, then set a discount or a target margin. You see the new price, the margin it leaves and how many units you need to sell to make the same total profit.
Results
- New price
- $40.00
- Margin at new price
- 50.0%
- Units needed to match old profit
- 150
- Extra sales needed
- 50.0%
- Discount versus current price
- 20.0%
- Margin today
- 60.0%
Frequently asked questions
How do you calculate a markdown price?
Multiply your current price by one minus the discount. A 20% markdown on a $50 item gives a price of $40.
How many more units do I need to sell after a discount?
Divide your old profit (old unit profit times old units) by the new profit per unit. This calculator does it for you and also shows the increase as a percentage.
How do I price for a target margin?
Divide your cost by one minus the margin. For a 40% margin on a $20 cost the price is $20 divided by 0.6, which is $33.33.
Does this include shipping and fees?
No. It uses price minus product cost only. Subtract payment fees, shipping and ads in the profit margin calculator for a full picture.
Related tools
Sources and assumptions
Costs per unit stay the same at the lower price.
Estimates for planning, not financial advice. Check current rates with your provider.