Margin Calculator
Australian GST CalculationsCalculate your gross profit margin, markup and profit from your cost and selling price.
Enter your product or service cost and selling price to see exactly how much you make on each sale.
Input Parameters
Direct cost to produce, purchase or import one unit before taxes.
The price charged to your client or buyer.
When checked, the 10% GST is automatically removed (divided by 1.10) to calculate your business profit margin on an ex-GST basis.
Percentage of selling price retained after direct goods cost.
For every $100 of sales before GST, $35.00 remains after the direct costs you entered to cover operating expenses and business profit.
What do you want to do next?
Follow the natural accounting pathway to dial in your Australian commercial pricing.
Need to work backwards from a target margin?
Input your desired margin (e.g. 40%) and unit cost to determine the mandatory invoice selling price.
Want to add a markup instead?
Apply a fixed percentage directly onto wholesale costs to establish catalog pricing for your inventory.
Want to know total profit from multiple sales?
Multiply your unit margin against expected monthly sales volume to forecast business gross cash flow.
Margin vs Markup: Why they are different
Confusing margin with markup is one of the most common pricing errors made by Australian small business owners, directly eroding operating profits.
“If something costs $60 and sells for $100:”
Gross Profit Margin
Margin is profit expressed as a percentage of the selling price. It tells you what proportion of each sales dollar your business keeps after covering product direct costs.
Markup on Cost
Markup is profit expressed as a percentage of the cost. It indicates how much you have marked up above the direct wholesale expense to reach the final shelf price.
How the Calculation Works
Australian commercial accounting follows three standard statutory formulas to derive margin, markup and gross unit profit.
Gross Profit
Represents the direct dollar balance remaining to service administrative rent, marketing, superannuation and company tax.
Margin Percentage
Selling price is in the denominator. Can never naturally exceed 100% unless costs are negative.
Markup Percentage
Cost price sits in the denominator. Easily exceeds 100% when selling prices are doubled.
Practical Scenario: Retail Product Sale
A retailer buys an item for $70 and sells it for $110 excluding GST.
Executive Takeaway: The retailer keeps $36.36 out of every $100 in revenue to cover operating expenses and business profit, requiring a 57.14% markup over their wholesale cost.
Related Business Calculators
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Selling Price Calculator
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Markup Calculator
Calculate selling price from cost and markup without compounding calculation errors.
Gross Profit Calculator
Calculate total gross dollar profit across multiple product sales and delivery contracts.
GST Calculator
Add, remove or identify 10% Australian GST for quarterly BAS and invoice reporting.
Profit Margin Calculator
Analyse net and operating profit as a percentage of total enterprise top-line revenue.
Discount Calculator
See how promotional discounts affect net price and verify remaining profit viability.
Frequently Asked Questions
Practical commercial guidance on margin calculations under Australian tax regulations.
A "good" profit margin varies considerably across Australian industries and operating models. For example, retail grocery often survives on slim gross margins of 15% to 25% due to high transaction turnover, whereas professional consultancies, SaaS and specialized trade services typically target 50% to 75% gross margins to cover heavy labor and indirect overheads. Rather than chasing generic benchmarks, ensure your margin provides sufficient dollar profits to cover operating leases, wages, superannuation, and emergency reserves.
Statutory Notice: BizCalc provides calculation tools for general informational purposes. Results depend on the figures you enter and do not constitute accounting, tax or financial advice. Consult a registered Australian BAS agent, CPA, or chartered tax advisor before making major commercial decisions.