Sale Price Calculator Formula
Understand the math behind the sale price calculator. Each variable explained with a worked example.
Formulas Used
Sale Price (before tax)
sale_price = discounted_priceSales Tax
tax_amount = discounted_price * tax_rate / 100Total After Tax
out_the_door = discounted_price * (1 + tax_rate / 100)Variables
| Variable | Description | Default |
|---|---|---|
retail_price | Retail Price(USD) | 149.99 |
markdown_pct | Markdown Percentage(%) | 30 |
tax_rate | Sales Tax Rate(%) | 8 |
discounted_price | Derived value= retail_price * (1 - markdown_pct / 100) | calculated |
How It Works
How to Calculate a Sale Price
The sale price is the original retail price reduced by the markdown percentage, with optional sales tax applied afterward.
Formula
Sale Price = Retail Price x (1 - Markdown% / 100)
Total = Sale Price x (1 + Tax Rate / 100)
Worked Example
A $149.99 pair of shoes is 30% off with 8% sales tax.
retail_price = 149.99markdown_pct = 30tax_rate = 8
- 01Markdown multiplier: 1 - 30/100 = 0.70
- 02Sale price = $149.99 x 0.70 = $104.99
- 03Tax = $104.99 x 0.08 = $8.40
- 04Total out-the-door = $104.99 + $8.40 = $113.39
Ready to run the numbers?
Open Sale Price Calculator