Selling Price Calculator
Work out the selling price needed to achieve your target profit margin.
Enter your product or service costs and desired margin to calculate the price you need to charge before and after Australian GST.
Cost & Target Margin Inputs
Enter GST-exclusive costs where possible
The direct cost to purchase, produce or deliver one unit, job or service.
Include direct costs such as packaging, freight, merchant fees, fulfilment or job-specific expenses.
Add 10% GST to calculate a GST-inclusive customer price where GST applies. The profitability calculation stays on an ex-GST basis.
Customer price incl. GST
At a customer price of $186.15 including GST, the $169.23 ex-GST selling price produces $59.23 gross profit per sale. This represents your selected 35.00% margin and an equivalent markup of 53.85% on the $110.00 total unit cost.
Compare Selling Prices by Target Margin
Calculated on your current total unit cost of $110.00.
| Target Margin | Selling Price ex GST | Customer Price incl GST | Gross Profit | Equivalent Markup |
|---|---|---|---|---|
| 20% | $137.50 | $151.25 | $27.50 | 25.00% |
| 30% | $157.14 | $172.86 | $47.14 | 42.86% |
| 35%Current | $169.23 | $186.15 | $59.23 | 53.85% |
| 40% | $183.33 | $201.67 | $73.33 | 66.67% |
| 50% | $220.00 | $242.00 | $110.00 | 100.00% |
What Happens If Your Costs Increase?
If costs rise and your selling price stays unchanged, your margin falls. These scenarios show the selling price required to preserve your selected 35.00% target margin.
| Scenario | Total Cost | Selling Price Required | Customer Price incl GST | Price Increase Required |
|---|---|---|---|---|
| Current cost | $110.00 | $169.23 | $186.15 | — |
| Cost +5% | $115.50 | $177.69 | $195.46 | +$8.46 |
| Cost +10% | $121.00 | $186.15 | $204.77 | +$16.92 |
| Cost +20% | $132.00 | $203.08 | $223.38 | +$33.85 |
Margin vs Markup
Same dollars of profit, two different denominators.
Margin
Margin measures profit as a percentage of selling price.
Markup
Markup measures profit as a percentage of cost.
A 50% margin is not the same as a 50% markup.
How the Calculation Works
Standard commercial pricing arithmetic — transparent formulae shown.
Add every direct cost of supplying one unit, job or service.
Dividing by one minus the margin expresses profit as a share of the price.
The dollars retained from each sale before overheads.
The same profit expressed against cost rather than price.
GST is added after the commercial ex-GST selling price is calculated, where GST applies.
Selling Price Example
An Australian small business supplies a product with a unit cost of $80 and $20 of packaging and freight, giving a $100 total cost, and targets a 40% gross margin.
To achieve a 40% gross margin on a $100 total cost, the business needs an ex-GST selling price of approximately $166.67.
A Calculated Price Is Not a Market Recommendation
This calculator works backwards from your costs and target margin. It does not know competitor pricing, market demand, customer willingness to pay or whether the resulting price is commercially achievable.
Use the calculated price as a financial reference point alongside your own market research and business judgement.
Related Australian Business Calculators
Cross-check your pricing from every angle with transparent formulae.
Margin Calculator
Check the margin generated by an existing selling price.
Markup Calculator
Calculate selling price using a markup percentage instead.
Profit Margin Calculator
Analyse profit relative to total revenue and costs.
Gross Margin Calculator
Analyse gross profit as a percentage of sales.
Gross Profit Calculator
Calculate total gross profit across multiple sales.
Discount Calculator
See how price discounts affect profit and margin.
GST Calculator
Add, remove or isolate Australian GST.
Frequently Asked Questions
Common questions about calculating selling price 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.