1. What is Price Markdown?

Price markdown refers to the reduction of an original price by a certain percentage. It's commonly used in retail to clear inventory, offer promotions, or adjust prices for sales events.

2. How Does the Calculator Work?

The calculator uses the price markdown formula:

Where:

• Original — The initial price before discount (in USD)
• Discount % — The percentage reduction (0-100%)

Explanation: The formula calculates the reduced price by subtracting the discount amount from the original price.

3. Importance of Price Markdown Calculation

Details: Accurate price markdown calculations are essential for maintaining profit margins, planning sales strategies, and communicating clear pricing to customers.

4. Using the Calculator

Tips: Enter the original price in USD and the discount percentage (0-100). Both values must be valid (price > 0, discount between 0-100).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between markdown and markup?
A: Markdown reduces the price, while markup increases the price from the cost to determine selling price.

Q2: How do I calculate the discount amount?
A: Discount amount = Original Price × (Discount % / 100)

Q3: What's a typical markdown percentage?
A: Typical markdowns range from 10-50%, but can be higher for clearance items.

Q4: Can I chain multiple discounts?
A: Sequential discounts aren't additive. For example, two 20% discounts equal 36% off (not 40%).

Q5: How does this relate to profit margins?
A: Markdowns directly affect gross profit, so businesses must carefully calculate acceptable discount levels.