Business Australia
Markup Calculator Australia
Markup and margin are two ways of describing the same profit, and mixing them up quietly costs businesses money. Enter your cost and either a markup, a target margin or a known price: the calculator fills in the rest and adds the 10% GST to show the price a customer pays.
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Selling price, excluding GST
—Markup
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Margin
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Profit per unit
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Price including GST
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The working
Working with a different rate? Edit the rates this calculator uses
These are the figures we verified on 2026-10-26. Change them to work with a historic period, or with a new rate that has been announced but which we have not published yet.
Australian Taxation Office
General information only. General information and estimates only, not financial, tax or legal advice. Rates, thresholds and rules change, so check with the ATO or a registered tax adviser before you act.
What is the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A $100 item sold for $150 has a 50% markup but only a 33.3% margin, because the same $50 of profit is measured against a bigger number. To get a 50% margin you need a 100% markup.
Choosing markup or margin
Markup is quick for pricing: add a percentage to cost. Margin is the better yardstick for reporting, because it tells you how much of every sales dollar is left after the cost of the goods. Retailers and accountants usually speak in margin, wholesalers and tradies often in markup.
Whichever you use, convert before comparing. A supplier quoting a 40% margin and a competitor quoting a 40% markup are describing very different prices.
Pricing for GST
If you are registered for GST, work in ex-GST figures: your cost is the ex-GST amount (you claim the GST you paid back as a credit) and your selling price adds 10% on top for the customer. Your profit is unchanged by GST, which is why the calculator keeps the two apart.
If your turnover is under the registration threshold and you are not registered, you cannot charge GST, and the GST in your costs is a real cost to you.
To split a GST-inclusive price, use the GST calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
markup % = (price − cost) ÷ cost × 100margin % = (price − cost) ÷ price × 100price from markup = cost × (1 + markup ÷ 100)price from margin = cost ÷ (1 − margin ÷ 100)price including GST = price × (1 + GST rate ÷ 100)
The two percentages divide the same profit by different bases, which is why they never match except at zero. Convert with margin = markup ÷ (1 + markup) and markup = margin ÷ (1 − margin): a 100% markup is a 50% margin, a 50% markup is a 33.3% margin and a 25% markup is a 20% margin.
Margin can never reach 100% because profit cannot exceed the price, while markup has no ceiling. Always enter cost and price excluding GST: GST is collected for the ATO and is not part of your profit.
A worked example
An item costs $100 excluding GST. Compare pricing it at a 50% markup with pricing it for a 50% margin.
- Price at a 50% markup$150.00
- Margin that gives33.3%
- Price for a 50% margin$200.00
- Markup that needs100%
- The 50% markup price with GST$165.00
A 50% markup gives $150; a 50% margin needs $200.
Pricing at a 50% markup while budgeting on a 50% margin leaves a third of the expected profit missing.
Covering overheads
A margin that looks healthy can still lose money once rent, wages and software come out. Use the gross profit calculator to see what is left after those costs, and the break-even calculator to see how many sales cover them.
What it leaves out
Discounts, shipping, payment fees and returns reduce the profit on each sale and are not modelled. Add them to cost if they apply to every unit.
What this calculator does not do
- Per-unit pricing only
- No discounts or fees
- GST at the rate you set
- General information, not tax advice
Common questions
What is the markup formula?
Markup % = (price − cost) ÷ cost × 100.
What is the margin formula?
Margin % = (price − cost) ÷ price × 100.
Is a 50% markup a 50% margin?
No. A 50% markup is a 33.3% margin; a 50% margin needs a 100% markup.
Should I price including or excluding GST?
Work out price ex-GST, then add GST for the customer if you are registered.
What margin is good?
It depends on the industry. Compare with your overheads rather than a general figure.
Where these numbers come from
- ATO — GST The 10% GST rate and the registration turnover threshold
- business.gov.au — running a business Government guidance on pricing, costs and starting out
Rates last verified 2026-10-26 Every figure Australian Taxation Office sets is re-checked against the source at least once a year, and again whenever a change is announced. Out of date? Tell us and we will fix it.
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