EStore Tools

Markdown Calculator

Find the deepest clearance markdown that still hits your sell-through target and your margin on the whole buy.

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Your numbers

Mode
The product
$
$
The buy
units
units

Share of the units bought you want sold by the end of the season.

%

Gross margin across every unit bought, including the ones that don't sell.

%

What a liquidator or outlet pays for what's left. 0 if you'll donate or bin it.

$
weeks

Your result · updates as you type

Deepest markdown that still hits both targets

36.7% off

Sell 120 more units at $38.00 or higher over 6 weeks (about 20 a week) to reach 90% sell-through and 50% margin on the whole buy.

Lowest markdown price
$38.00
Margin on markdown units
36.8%
Units to sell per week
20

Start shallower than the maximum (say 15% off) and deepen it only if weekly sales fall short of 20 units. The first markdown usually moves the most stock.

Margin on the whole buy at each markdown
10% off
54.5%
20% off
52.9%
30% off
51.2%
40% off
49.4%
50% off
47.4%
60% off
45.2%
70% off
42.9%

Breakdown

Cost of the whole buy
$9,600
Revenue needed for 50% margin
$19,200
Full-price sales (240 units)
$14,400
Leftovers at the end (40 units × $6.00)
$240
Needed from 120 markdown units
$4,560

How the clearance markdown is worked out

A clearance markdown has two jobs: sell enough of the stock, and keep the margin on the whole purchase, not just on the units that are left. The calculator finds the lowest price that does both.

Lowest markdown price = (revenue needed − full-price sales − leftover value) ÷ units still to sell
Revenue needed = cost of the whole buy ÷ (1 − margin target)

Example: the default numbers

Bought
400 units at $24 = $9,600
Sold at $60
240 units = $14,400
90% sell-through
sell 120 more; 40 left at $6 = $240
Revenue needed for 50% margin
9,600 ÷ 0.5 = $19,200

(19,200 − 14,400 − 240) ÷ 120 = $38.00, so the deepest markdown is 36.7% off, selling about 20 units a week over 6 weeks.

Marking down on Shopify and WooCommerce

  1. 01

    Shopify

    Open the product from Products, click Compare at in the price section, enter the original price there and the markdown price in Price. The compare-at price has to be higher for the sale to show.

  2. 02

    WooCommerce

    Edit the product and enter the markdown in the Sale price field on the General tab. You can schedule start and end dates.

  3. 03

    Stage it

    Start shallower than the maximum and deepen only if weekly sales fall short of the pace the calculator shows.

Markdown % between two prices

Markdown % = (original price − markdown price) ÷ original price

Switch to Markdown % from two prices to get the percentage and the margin at the new price. $60 down to $45 is a 25% markdown.

Questions people ask

How do you calculate a markdown percentage?

Subtract the new price from the original price and divide by the original price. $60 to $45 is $15 ÷ $60 = 25%.

What's the difference between markdown and markup?

Markup is what you add to cost to set a price. Markdown is a cut from the selling price, usually to clear stock.

Can markdown units sell below cost and still be fine?

Yes. If full-price sales earned enough, clearing the rest below cost can still hit your margin on the whole buy. The calculator counts the entire purchase.

What sell-through target should I use?

Use your own plan for the season. Every unsold unit ties up cash and space, so set it with your leftover value in mind.

Related tools

Discount CalculatorGet the sale price and how much you save from a percentage or amount off, or find the percent off between two prices.Stacked Discount CalculatorFind the real percentage off when two or three discounts stack, applied one after another or all from the original price.Stockout Date CalculatorFind the date you'll run out of stock, your weeks of supply and the last day to reorder, from your recent sales.Discount Break-Even CalculatorSee how many more units you need to sell before a discount actually makes you money.

Want this builtinto your store?

I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.

Emmanuel Asika

Emmanuel Asika

Shopify & WooCommerce developer, Dublin

I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.

hello@emmanuelasika.com
See my work

Last reviewed 30 September 2026.

Sources: Shopify Help Center: Setting sale prices (compare-at price)