About Markdown Calculator (Formula)
A Markdown Calculator is a financial tool used in retail and sales to calculate the final selling price of a product after applying a markdown or discount to the original price. Markdowns are common in retail to promote sales, clear inventory, or offer special deals to customers. The formula for calculating the final selling price (FSP) after a markdown is applied is straightforward:
Final Selling Price (FSP) = Original Price (OP) – (Original Price (OP) × Markdown Percentage (MP))
Where:
- Final Selling Price (FSP) is the price at which the product is sold to the customer after applying the markdown, typically measured in currency units (e.g., dollars).
- Original Price (OP) is the initial or regular price of the product before the markdown, typically measured in the same currency units.
- Markdown Percentage (MP) is the percentage reduction or discount applied to the original price to calculate the markdown.
This formula calculates the new selling price after deducting the percentage discount from the original price.
Markdown Calculators are valuable tools for retailers, sales teams, and business owners to quickly and accurately determine the discounted price of products during sales events or promotions. These calculators help businesses effectively manage pricing strategies, attract customers, and boost sales by offering competitive discounts while maintaining profitability.