Retail Markdown & Clearance Yield Calculator
Plan boutique or e-commerce clearance events. Enter inventory cost, quantity, and progressive discount tiers to forecast revenue yield and overall gross margin.
Inputs
Results
How this calculator works
- Enter unit cost, original retail, and quantity.
- Set three progressive discount tiers and units sold in each.
- Leave remaining units as unsold/write-down if needed.
- Review total revenue, COGS, and gross margin.
Why this matters
Plan boutique or e-commerce clearance events. Enter inventory cost, quantity, and progressive discount tiers to forecast revenue yield and overall gross margin.
Frequently asked questions
How do retailers calculate markdown impact?
Multiply units sold at each discount tier by the discounted price, sum revenue, then subtract COGS to see gross margin.
When does a clearance sale lose money?
When blended selling prices fall below cost, or when deep discounts clear too little volume to offset earlier full-price sell-through targets.
Should every unit go to the deepest discount?
No. Progressive tiers often protect margin better than an immediate deep cut.
What is clearance yield?
Total dollars recovered from marked-down inventory relative to original retail or cost—useful for end-of-season planning.