Profit Margin Calculator
Calculate your profit margin from revenue and costs.
Enter your sales revenue and business costs to see your gross profit, profit margin and profit per dollar of revenue. Designed for Australian commercial trading and reporting, with transparent formulae shown.
Calculation Inputs
Commercial values for current accounting batch
GST collected is not business revenue — it is remitted with your BAS. For a true commercial margin, enter GST-exclusive revenue and costs. Use the GST calculator to strip GST from GST-inclusive figures first.
Presets set your costs to the level that produces the selected margin on your current revenue.
Gross profit expressed as a proportion of total turnover
For every $100 of revenue, $35.00 remains after the direct costs entered above to cover fixed overheads, taxes, and net business earnings.
What do you want to do next?
Need to raise your price to protect your margin?
Work backwards from target profitability to calculate required selling prices across wholesale and retail tariffs.
Calculate margin from individual unit cost and price?
Isolate single SKU performance, landed import tariffs, and specific packaging overheads per unit sold.
Need to apply a percentage markup on cost instead?
Add standard percentage margins directly on top of wholesale purchasing costs for fast price quotes.
What happens if costs rise? (Margin Squeeze Analysis)
See how supplier price hikes, inflation, and freight increases erode your commercial margins without price adjustments.
| Scenario | Revenue | Costs | Profit | Margin | Impact / Squeeze |
|---|---|---|---|---|---|
| Current | $10,000.00 | $6,500.00 | $3,500.00 | 35.0% | Baseline |
| Costs +5% | $10,000.00 | $6,825.00 | $3,175.00 | 31.8% | -3.3% Margin Loss |
| Costs +10% | $10,000.00 | $7,150.00 | $2,850.00 | 28.5% | -6.5% Margin Loss |
| Costs +15% | $10,000.00 | $7,475.00 | $2,525.00 | 25.3% | -9.7% Margin Loss |
Need to raise your price to protect your margin? Work backwards from your 35% target to determine the new invoice price required.
How the Calculation Works
Standard commercial accounting arithmetic — transparent formulae shown.
Deduct total cost of goods sold and ancillary direct order execution fees from top-line turnover.
Express the residual dollar surplus as a direct decimal percentage of the total sales revenue generated.
Based on your current inputs, generating $3,500.00 retained margin on $10,000.00 gross sales.
Margin vs Markup: The Critical Commercial Distinction
Margin measures profit as a percentage of revenue. It is different from markup, which measures profit relative to cost. Confusing margin with markup leads to underpriced contracts and severe cash flow erosion.
Related Australian Business Calculators
Integrated tools built for BAS agents, retail operators, and commercial contractors.
Margin Calculator
Calculate commercial margin from unit wholesale cost and final customer selling price.
Gross Profit Calculator
Calculate total gross dollar profit across multiple product sales and delivery contracts.
Markup Calculator
Apply a percentage markup directly on cost to derive a calculated selling price.
Discount Calculator
See how promotional discounts affect net price and verify remaining profit viability.
GST Calculator
Add, remove or identify the 10% Australian GST component for invoices and BAS.
Selling Price Calculator
Work out the price required to achieve a target margin on goods or client services.
Frequently Asked Questions
Common questions about profit margin for Australian businesses.
Statutory Notice: BizCalc Australia 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 BAS agent, CPA or tax professional for formal advice.