Act on the result
Compare proposed units sold with the break-even units before changing the live price or committing disposal terms.
Educational only: Business decision support, not accounting, tax or legal advice.
Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Product and retail businesses deciding whether a markdown improves recovery from a finite stock pool.
Outputs
Markdown price, baseline and proposed contribution, change, remaining units and break-even sell-through.
Start here
Enter one inventory pool, its unit cost and regular recovery, then test markdown depth and proposed units sold.
Use a different tool when: Do not use this to test a general discount-volume decision without a finite inventory pool; use Discount Profit Impact Planner for that decision. Use this tool to choose markdown depth, sell-through, cash recovery and contribution for finite inventory.
Commerce & operations
Retail Markdown Profitability & Recovery: markdown price
Markdown price, baseline and proposed contribution, change, remaining units and break-even sell-through.
Amounts use the same currency as your inputs. No currency conversion is performed.
Retail Markdown Profitability & Recovery
Compare markdown profit and inventory cash recovery with baseline sell-through, holding cost and salvage value.
Your numbers stay in this browser
Use the normal ex-tax selling price. Use one consistent ex-tax currency basis.
Use the inventory cost for each unit. Use one consistent ex-tax currency basis.
Use the whole inventory pool before full-price sales.
Enter units sold before the markdown decision.
Enter the proposed reduction from regular price.
Share of remaining stock expected to sell at the markdown price.
Share of remaining stock expected to sell without markdown.
Carrying cost for each unit left after the scenario. Use one consistent ex-tax currency basis.
Cash expected from each unit not sold normally. Use one consistent ex-tax currency basis.
Decision result
Every value is bound to the registered inventory or hospitality engine and keeps the decision components visible on one consistent basis.
- Markdown Unit Price
- 80.00
- Units Available For Markdown
- 60 units
- Markdown Units Sold
- 45 units
- Baseline Contribution
- 2,010.00
- Proposed Contribution
- 3,675.00
- Contribution change
- 1,665.00
- Proposed Remaining Units
- 15 units
- Recovered Cash
- 7,675.00
- Break Even Markdown Units
- 22.8 units
- Break Even Markdown Sell Through
- 38%
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current scenario1,665.00Baseline
Lower Expected markdown sell-through1,327.50-337.50
Higher Expected markdown sell-through2,002.50337.50
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Markdown Unit Price
Markdown Unit Price
regular unit price × (1 − markdown rate)80.00Result80.00
Uses one consistent period, item basis and market-neutral ex-tax currency where money applies. The engine retains full precision; display rounding does not feed calculation.
Retail Markdown Profitability & Recovery Planner formulas →Inputs used by these formula steps
- Markdown Unit PriceRegular Unit Price
- 100
- Markdown Unit PriceUnit Inventory Cost
- 40
- Markdown Unit PriceStarting Units
- 100
- Markdown Unit PriceUnits Sold At Full Price
- 40
- Markdown Unit PriceMarkdown Rate
- 0.2
- Markdown Unit PriceExpected Markdown Sell Through Rate
- 0.75
- Markdown Unit PriceBaseline Sell Through Without Markdown Rate
- 0.3
- Markdown Unit PriceHolding Cost Per Leftover Unit
- 5
- Markdown Unit PriceSalvage Value Per Leftover Unit
- 10
Units Available For Markdown
Units Available For Markdown
starting stock − prior full-price units60 unitsResult60 units
Uses one consistent period, item basis and market-neutral ex-tax currency where money applies. The engine retains full precision; display rounding does not feed calculation.
Retail Markdown Profitability & Recovery Planner formulas →Inputs used by these formula steps
- Units Available For MarkdownRegular Unit Price
- 100
- Units Available For MarkdownUnit Inventory Cost
- 40
- Units Available For MarkdownStarting Units
- 100
- Units Available For MarkdownUnits Sold At Full Price
- 40
- Units Available For MarkdownMarkdown Rate
- 0.2
- Units Available For MarkdownExpected Markdown Sell Through Rate
- 0.75
- Units Available For MarkdownBaseline Sell Through Without Markdown Rate
- 0.3
- Units Available For MarkdownHolding Cost Per Leftover Unit
- 5
- Units Available For MarkdownSalvage Value Per Leftover Unit
- 10
Markdown Units Sold
Markdown Units Sold
available units × markdown sell-through45 unitsResult45 units
Uses one consistent period, item basis and market-neutral ex-tax currency where money applies. The engine retains full precision; display rounding does not feed calculation.
Retail Markdown Profitability & Recovery Planner formulas →Inputs used by these formula steps
- Markdown Units SoldRegular Unit Price
- 100
- Markdown Units SoldUnit Inventory Cost
- 40
- Markdown Units SoldStarting Units
- 100
- Markdown Units SoldUnits Sold At Full Price
- 40
- Markdown Units SoldMarkdown Rate
- 0.2
- Markdown Units SoldExpected Markdown Sell Through Rate
- 0.75
- Markdown Units SoldBaseline Sell Through Without Markdown Rate
- 0.3
- Markdown Units SoldHolding Cost Per Leftover Unit
- 5
- Markdown Units SoldSalvage Value Per Leftover Unit
- 10
Baseline Contribution
Baseline Contribution
baseline sold contribution + baseline unsold recovery contribution2,010.00Result2,010.00
Uses one consistent period, item basis and market-neutral ex-tax currency where money applies. The engine retains full precision; display rounding does not feed calculation.
Retail Markdown Profitability & Recovery Planner formulas →Inputs used by these formula steps
- Baseline ContributionRegular Unit Price
- 100
- Baseline ContributionUnit Inventory Cost
- 40
- Baseline ContributionStarting Units
- 100
- Baseline ContributionUnits Sold At Full Price
- 40
- Baseline ContributionMarkdown Rate
- 0.2
- Baseline ContributionExpected Markdown Sell Through Rate
- 0.75
- Baseline ContributionBaseline Sell Through Without Markdown Rate
- 0.3
- Baseline ContributionHolding Cost Per Leftover Unit
- 5
- Baseline ContributionSalvage Value Per Leftover Unit
- 10
Proposed Contribution
Proposed Contribution
markdown sold contribution + proposed unsold recovery contribution3,675.00Result3,675.00
Uses one consistent period, item basis and market-neutral ex-tax currency where money applies. The engine retains full precision; display rounding does not feed calculation.
Retail Markdown Profitability & Recovery Planner formulas →Inputs used by these formula steps
- Proposed ContributionRegular Unit Price
- 100
- Proposed ContributionUnit Inventory Cost
- 40
- Proposed ContributionStarting Units
- 100
- Proposed ContributionUnits Sold At Full Price
- 40
- Proposed ContributionMarkdown Rate
- 0.2
- Proposed ContributionExpected Markdown Sell Through Rate
- 0.75
- Proposed ContributionBaseline Sell Through Without Markdown Rate
- 0.3
- Proposed ContributionHolding Cost Per Leftover Unit
- 5
- Proposed ContributionSalvage Value Per Leftover Unit
- 10
Contribution change
Contribution Change
proposed contribution − baseline contribution1,665.00Result1,665.00
Uses one consistent period, item basis and market-neutral ex-tax currency where money applies. The engine retains full precision; display rounding does not feed calculation.
Retail Markdown Profitability & Recovery Planner formulas →Inputs used by these formula steps
- Contribution ChangeRegular Unit Price
- 100
- Contribution ChangeUnit Inventory Cost
- 40
- Contribution ChangeStarting Units
- 100
- Contribution ChangeUnits Sold At Full Price
- 40
- Contribution ChangeMarkdown Rate
- 0.2
- Contribution ChangeExpected Markdown Sell Through Rate
- 0.75
- Contribution ChangeBaseline Sell Through Without Markdown Rate
- 0.3
- Contribution ChangeHolding Cost Per Leftover Unit
- 5
- Contribution ChangeSalvage Value Per Leftover Unit
- 10
Proposed Remaining Units
Proposed Remaining Units
units available − proposed units sold15 unitsResult15 units
Uses one consistent period, item basis and market-neutral ex-tax currency where money applies. The engine retains full precision; display rounding does not feed calculation.
Retail Markdown Profitability & Recovery Planner formulas →Inputs used by these formula steps
- Proposed Remaining UnitsRegular Unit Price
- 100
- Proposed Remaining UnitsUnit Inventory Cost
- 40
- Proposed Remaining UnitsStarting Units
- 100
- Proposed Remaining UnitsUnits Sold At Full Price
- 40
- Proposed Remaining UnitsMarkdown Rate
- 0.2
- Proposed Remaining UnitsExpected Markdown Sell Through Rate
- 0.75
- Proposed Remaining UnitsBaseline Sell Through Without Markdown Rate
- 0.3
- Proposed Remaining UnitsHolding Cost Per Leftover Unit
- 5
- Proposed Remaining UnitsSalvage Value Per Leftover Unit
- 10
Recovered Cash
Recovered Cash
full-price cash + markdown cash + salvage − holding cost7,675.00Result7,675.00
Uses one consistent period, item basis and market-neutral ex-tax currency where money applies. The engine retains full precision; display rounding does not feed calculation.
Retail Markdown Profitability & Recovery Planner formulas →Inputs used by these formula steps
- Recovered CashRegular Unit Price
- 100
- Recovered CashUnit Inventory Cost
- 40
- Recovered CashStarting Units
- 100
- Recovered CashUnits Sold At Full Price
- 40
- Recovered CashMarkdown Rate
- 0.2
- Recovered CashExpected Markdown Sell Through Rate
- 0.75
- Recovered CashBaseline Sell Through Without Markdown Rate
- 0.3
- Recovered CashHolding Cost Per Leftover Unit
- 5
- Recovered CashSalvage Value Per Leftover Unit
- 10
Break Even Markdown Units
Break Even Markdown Units
(baseline contribution − all-unsold contribution) / (markdown price − recovery per unsold unit)22.8 unitsResult22.8 units
Uses one consistent period, item basis and market-neutral ex-tax currency where money applies. The engine retains full precision; display rounding does not feed calculation.
Retail Markdown Profitability & Recovery Planner formulas →Inputs used by these formula steps
- Break Even Markdown UnitsRegular Unit Price
- 100
- Break Even Markdown UnitsUnit Inventory Cost
- 40
- Break Even Markdown UnitsStarting Units
- 100
- Break Even Markdown UnitsUnits Sold At Full Price
- 40
- Break Even Markdown UnitsMarkdown Rate
- 0.2
- Break Even Markdown UnitsExpected Markdown Sell Through Rate
- 0.75
- Break Even Markdown UnitsBaseline Sell Through Without Markdown Rate
- 0.3
- Break Even Markdown UnitsHolding Cost Per Leftover Unit
- 5
- Break Even Markdown UnitsSalvage Value Per Leftover Unit
- 10
Break Even Markdown Sell Through
Break Even Markdown Sell Through
break-even markdown units / units available0.38 percentResult38%
Uses one consistent period, item basis and market-neutral ex-tax currency where money applies. The engine retains full precision; display rounding does not feed calculation.
Retail Markdown Profitability & Recovery Planner formulas →Inputs used by these formula steps
- Break Even Markdown Sell ThroughRegular Unit Price
- 100
- Break Even Markdown Sell ThroughUnit Inventory Cost
- 40
- Break Even Markdown Sell ThroughStarting Units
- 100
- Break Even Markdown Sell ThroughUnits Sold At Full Price
- 40
- Break Even Markdown Sell ThroughMarkdown Rate
- 0.2
- Break Even Markdown Sell ThroughExpected Markdown Sell Through Rate
- 0.75
- Break Even Markdown Sell ThroughBaseline Sell Through Without Markdown Rate
- 0.3
- Break Even Markdown Sell ThroughHolding Cost Per Leftover Unit
- 5
- Break Even Markdown Sell ThroughSalvage Value Per Leftover Unit
- 10
Inputs used
- Regular unit price
- 100.00
- Unit inventory cost
- 40.00
- Starting stock units
- 100
- Units already sold at full price
- 40
- Markdown rate
- 0.2
- Expected markdown sell-through
- 0.75
- Baseline full-price sell-through
- 0.3
- Holding cost per leftover unit
- 5.00
- Salvage value per leftover unit
- 10.00
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| baselineSellThroughWithoutMarkdownRate | Share of remaining stock expected to sell without markdown. | proportion of the relevant inventory or price basis | 0 to 1 | Required | 0.3 |
| expectedMarkdownSellThroughRate | Share of remaining stock expected to sell at the markdown price. | proportion of the relevant inventory or price basis | 0 to 1 | Required | 0.75 |
| holdingCostPerLeftoverUnit | Carrying cost for each unit left after the scenario. Use one consistent ex-tax currency basis. | currency units/planning period, ex tax | 0 to 10000000 | Required | 5 |
| markdownRate | Enter the proposed reduction from regular price. | proportion of regular unit price discounted | 0 to 1 | Required | 0.2 |
| regularUnitPrice | Use the normal ex-tax selling price. Use one consistent ex-tax currency basis. | currency units/planning period, ex tax | 0 to 10000000 | Required | 100 |
| salvageValuePerLeftoverUnit | Cash expected from each unit not sold normally. Use one consistent ex-tax currency basis. | currency units/planning period, ex tax | 0 to 10000000 | Required | 10 |
| startingUnits | Use the whole inventory pool before full-price sales. | whole product units | 0 to 100000000 | Required | 100 |
| unitInventoryCost | Use the inventory cost for each unit. Use one consistent ex-tax currency basis. | currency units/planning period, ex tax | 0 to 10000000 | Required | 40 |
| unitsSoldAtFullPrice | Enter units sold before the markdown decision. | currency units/planning period, ex tax | 0 to 100000000 | Required | 40 |
Retail Markdown Profitability & Recovery: markdown price
A positive change means the entered markdown sell-through and unsold recovery improve contribution versus the baseline scenario.
Formula summary
- Primary formula
- proposed contribution − baseline contribution
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Retest a deeper markdown, lower proposed sell-through and lower recovery per unsold unit.
When this estimate can be misleading
- Demand, costs, lead times, tax and targets are user-entered scenarios; no market benchmark is embedded.
- Use one consistent item, period and ex-tax currency basis where money applies.
- This is educational business decision support, not accounting, tax, legal or financial advice.
- A positive change means the entered markdown sell-through and unsold recovery improve contribution versus the baseline scenario.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Markdown Timing and Margin Recovery
Compare the contribution recovered by a markdown with holding cost, sell-through evidence and the cost of waiting.
Read guide
Frequently asked questions
How do I choose markdown depth and sell-through for a finite inventory pool?
Compare proposed units sold with the break-even units before changing the live price or committing disposal terms.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.