Markup & Margin Calculator Australia

Markup and margin both measure profit, but against different bases. Markup is profit as a percentage of your cost, how much you add on top of what you paid. Margin is profit as a percentage of your sell price, how much of each sale you keep. On a $100 cost sold for $150, the profit is $50: that is a 50% markup (50 ÷ 100) but a 33.3% margin (50 ÷ 150). Markup is always the larger number.

Markup % = (sell price − cost price) ÷ cost price × 100. For example, if an item costs you $80 and you sell it for $120, your markup is ($120 − $80) ÷ $80 × 100 = 50%. To go the other way, sell price = cost × (1 + markup% ÷ 100). A markup below zero is a real answer, not an error: it is what a discount or a loss leader looks like, and this calculator will compute it down to −100%, the point where you are giving the goods away.

Margin % = (sell price − cost price) ÷ sell price × 100. For example, an item costing $80 and selling for $120 has a margin of ($120 − $80) ÷ $120 × 100 = 33.3%. Because the denominator is the sell price and not the cost, the margin is always the smaller of the two percentages.

Margin = markup ÷ (1 + markup). So a 50% markup equals 0.5 ÷ 1.5 = 33.3% margin. To convert the other way, markup = margin ÷ (1 − margin): a 40% margin is 0.4 ÷ 0.6 = 66.7% markup. This calculator does the conversion for you, just enter your cost plus any one of markup %, margin %, or sell price. Switching between the three carries the answer across, so you can check a figure by flipping to the mode you did not enter.

Not while the goods cost you something. Rearranging the formula gives sell price = cost ÷ (1 − margin), so a 90% margin needs a sell price ten times your cost, a 99% margin needs a hundred times, and 100% needs an infinite price. That is why the margin field here stops at 99.9% and why the calculator refuses to answer at 100% or above instead of showing you a zero. The one exception is a zero cost item, where every dollar you charge is profit: the margin is 100% and the markup is undefined, not zero, so this page prints n/a for it.

Because the percentage on screen is rounded and the arithmetic behind it is not. A $100 cost at a 50% markup sells for $150, and the true margin is 33.3333...%, printed as 33.3%. Type 33.3 back in and you ask for a slightly smaller margin, so you get $149.93 and a 49.93% markup. Nothing is wrong, you simply gave the calculator a rounded number. Switching modes with the buttons carries the unrounded figure across (to four decimal places), which is why using the mode buttons round-trips to the cent and retyping the displayed figure does not.

GST-exclusive, which is how you compare profitability. Turn on "Show the GST-inclusive sell price" to also see what a registered business would charge a customer with Australia's flat 10% GST added (sell price × 1.1). Markup, margin and profit do not move when you turn it on: GST is collected on behalf of the ATO, not kept as profit.

No. You charge GST only when you are registered for it, and registration is compulsory once your GST turnover reaches $75,000 in any rolling 12 month period (lower for taxi, ride-sourcing and some other activities). Below that it is optional. Two things follow for this calculator. Leave the GST toggle off if you are not registered, because adding 10% to your price when you cannot remit it is not a price rise, it is an error. And if you are not registered you cannot claim the GST back on what you buy either, so your true cost is the GST-inclusive amount you paid: put that figure in the cost field, or this page will overstate your markup by about a tenth.

No. The figure this page calls profit is gross profit on the cost of goods only. It has not paid for your time, your apprentice, rent, insurance, software, the vehicle, freight, breakage, the discount you gave to win the job, or income tax. A 33% margin on materials can still be a loss once a day of labour is against it. Price the labour into the cost field, or treat this as the materials half of a quote and use the tradie quote calculator or the hourly rate calculator for the rest.

More than most people allow for, because the fee comes off the whole sale while your profit is only part of it. On a $150 sale with $50 gross profit, a 1.6% merchant fee is $2.40, which is 1.6% of the price but 4.8% of the profit. At a 10% margin a 1.6% fee eats about a sixth of what you keep. Either build the cost of acceptance into the price you set here, or work out what a compliant surcharge would be with the card surcharge calculator, keeping in mind that surcharging rules change on 1 October 2026.

Because a month is not four weeks. The projection multiplies your unit profit by 52 to get the year, then divides by 12 for the month, so a month is 4.33 weeks and monthly is about 8% above weekly times four. It is the same reason an annual figure never equals 52 times a weekly one once you round. The 52 week year is itself an approximation: a calendar year holds 52.18 weeks, and depending on where the days fall a business can bank 53 selling weeks. Treat the annual column as a run rate, not a forecast, and never as a rate for a specific 12 month period.

The arithmetic is exact and the GST rate is the statutory 10%, so the conversion between markup, margin and sell price is right to the cent. What the tool cannot know is your real cost. If the cost field holds only materials, the margin on screen is a materials margin and it is not the margin your business runs at. Percentages display to one decimal place (more when a margin gets close to 100%), so a figure you copy out and type back in can move a sell price by a few cents. It is a pricing tool, not tax advice or a substitute for your own books.