List Price Markdown
Set your prices like a pro. This tool helps you work backward from a desired sale price to find the 'MSRP' or list price needed to accommodate your marketing discounts.
What is a list price markdown?
A list price markdown is the reduction in the original price of a product to a lower sale price. This calculator helps you determine what that original "list price" should be if you already know your target sale price and the discount you want to offer.
How do I calculate list price from a markdown?
The formula is: List Price = Sale Price / (1 - Markdown%). For example, if you want to sell an item for $80 after a 20% markdown, the list price should be $80 / 0.80 = $100.
What is the difference between markdown and discount?
In retail, they are often used interchangeably. However, "markdown" usually refers to a permanent reduction in price to clear inventory, while "discount" may be a temporary promotional offer.
How does markdown affect profit margin?
Markdowns directly reduce your profit margin. If your cost is $50 and you mark down a $100 item by 20%, your profit drops from $50 to $30, and your margin drops from 50% to 37.5%.