Planned markdown calculator for multi-stage retail schedules
What a planned markdown calculator should answer
The useful question is never "what is 30% off $49". It is "if I break to 20% in week five and 40% in week nine, where does the season land". That requires three things a percentage-off tool does not have: a timeline, a sell-through assumption per price period, and an ending-inventory target to judge the result against.
This calculator carries all three. Each price period sells a weekly percentage of the units still remaining, compounded across that period's weeks, so a late break works on a smaller base — the reason a deep clearance often recovers less cash than expected.
| Price period | Weeks | Units sold | Revenue | Margin on those units |
|---|---|---|---|---|
| Full price · $49.00 | wks 1–4 | 182 | $8,918 | 63.3% |
| 20% off · $39.20 | wks 5–8 | 247 | $9,682 | 54.1% |
| 40% off · $29.40 | wks 9–11 | 231 | $6,791 | 38.8% |
| 60% off · $19.60 | wks 12–14 | 198 | $3,881 | 8.2% |
Maintained margin across the whole season: 45.6% against a 63.3% initial margin — 17.7 points of erosion, with 0 units left and $29,272 recovered. Illustrative figures produced by this model; your sell-through assumptions will move them.
Model your markdown schedule
Two scenarios are loaded so you can compare a steady cadence against an early decisive break. Edit anything — results update as you type.
1 · Inventory position
Context only — shows the pace you already ran.
What you are willing to carry out of the season.
Jobber, outlet, or carryover value at season end.
2 · Season window
Share of remaining units sold per week.
3 · Markdown schedule
Up to six price periods. Every period carries its own sell-through assumption — that is the number most calculators hide.
How wrong your weekly sell-through guesses could be. Every output is reported as a band, not a single false-precision number.
Maintained margin
47.6%
45.3% – 49.6% range
Expected ending stock
148 u
70 – 293 u range
Target 60 u
Cash recovered
$37,444
$32,453 – $41,012 range
Margin erosion
14.9 pts
from 62.5% initial margin
Sensitivity band
Demand assumptions flexed ±30% against your per-period rates
| Case | Sell-through | Ending units | Cash recovered | Maintained margin | Gross margin $ |
|---|---|---|---|---|---|
| Slow (−30%) | 75.6% | 293 | $32,453 | 45.3% | $13,493 |
| Planned | 87.7% | 148 | $37,444 | 47.6% | $17,177 |
| Fast (+30%) | 94.2% | 70 | $41,012 | 49.6% | $20,043 |
Ends 88 units above target. Move a markdown earlier or deepen the last break.
Period-by-period walk
| Price period | Window | Weeks | Price | Wkly ST | Units sold | Left | Revenue |
|---|---|---|---|---|---|---|---|
| Full price | Aug 17 → Sep 7 | 3 | $48.00 | 6% | 203 | 997 | $9,758 |
| 20% off | Sep 7 → Oct 5 | 4 | $38.40 | 11% | 371 | 625 | $14,260 |
| 40% off | Oct 5 → Oct 26 | 3 | $28.80 | 20% | 305 | 320 | $8,789 |
| 60% off | Oct 26 → Nov 9 | 2 | $19.20 | 32% | 172 | 148 | $3,305 |
Average unit retail $34.33 · markdown dollars taken $14,382 · salvage on leftovers $1,332
Scenarios side by side
| Scenario | First break | Steps | Maint. margin | Ending units | Cash recovered | Erosion |
|---|---|---|---|---|---|---|
| Plan A · steady | 20% · 09-07 | 3 | 47.6% | 148 (70 – 293) | $37,444 | 14.9 pts |
| Plan B · early break | 30% · 08-31 | 3 | 39.9% | 46 (13 – 140) | $34,960 | 22.6 pts |
How to use the calculator
- 1
Describe the season, not the discount
Units on hand, unit cost, original ticket, season end date, current weekly sell-through, and the ending inventory you are willing to carry into next season. The target is what turns the output into a verdict.
- 2
Lay in the markdown dates and rates
Up to six stages. Dates matter as much as depth, because each break only works on units still remaining when it starts.
- 3
Set sell-through per price period
Full price is the slowest rate; each deeper break should lift it. Start from last season's weekly units at similar discounts rather than a rule of thumb.
- 4
Read the sensitivity band, not the midpoint
The spread flexes every rate up and down together. A plan that only hits your ending-stock target in the fast case is a fragile plan.
- 5
Compare scenarios, then export the decision
Duplicate the scenario, change one thing, and compare maintained margin and ending stock in a single table. Export CSV or copy a shareable link for the markdown review.
Keep planning
- Maintained markup calculator
Check what the schedule leaves you after markdowns, measured on both cost and retail.
- Sell-through and markdown timing
How to turn weekly sell-through into the per-period assumptions this calculator needs.
- Markdown schedule template
A spreadsheet-style layout if you need the plan on paper for a buy meeting.
- End-of-season markdown strategy
How deep the final break usually has to go to clear residual stock.
Answers
Planned markdown calculator questions
Compare two markdown schedules side by side
Free: six markdown stages, editable sell-through per period, sensitivity band, CSV export and a shareable scenario link. Saved plans, CSV imports and printable decision memos are Pro.