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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

$ AUD

The direct cost to purchase, produce or deliver one unit, job or service.

Optional
$ AUD

Include direct costs such as packaging, freight, merchant fees, fulfilment or job-specific expenses.

1%–90%
%

Add 10% GST to calculate a GST-inclusive customer price where GST applies. The profitability calculation stays on an ex-GST basis.

Calculated Selling Price35.00% margin
$186.15 AUD

Customer price incl. GST

Selling price ex GST
$169.23
Customer price incl GST
$186.15
Total unit cost
$110.00
Gross profit
$59.23
Target margin
35.00%
Equivalent markup
53.85%
GST amount (10%)
$16.92

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 MarginSelling Price ex GSTCustomer Price incl GSTGross ProfitEquivalent Markup
20%$137.50$151.25$27.5025.00%
30%$157.14$172.86$47.1442.86%
35%Current$169.23$186.15$59.2353.85%
40%$183.33$201.67$73.3366.67%
50%$220.00$242.00$110.00100.00%

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.

ScenarioTotal CostSelling Price RequiredCustomer Price incl GSTPrice 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.

Cost$100.00
Selling price$200.00
Gross profit$100.00
Margin50%
Markup100%

A 50% margin is not the same as a 50% markup.

How the Calculation Works

Standard commercial pricing arithmetic — transparent formulae shown.

Step 1 — Total Cost
Total Cost = Unit Cost + Additional Cost

Add every direct cost of supplying one unit, job or service.

Step 2 — Selling Price
Selling Price = Total Cost ÷ (1 − Target Margin)

Dividing by one minus the margin expresses profit as a share of the price.

Step 3 — Gross Profit
Gross Profit = Selling Price − Total Cost

The dollars retained from each sale before overheads.

Step 4 — Equivalent Markup
Markup = (Gross Profit ÷ Total Cost) × 100

The same profit expressed against cost rather than price.

Step 5 — GST
GST = Selling Price × 10%

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.

Unit cost$80.00
Packaging and freight$20.00
Total cost$100.00
Target margin40%
Selling price ex GST ($100 ÷ 0.60)$166.67
Gross profit$66.67
Equivalent markup66.67%
GST$16.67
Customer price incl GST$183.34

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.

Frequently Asked Questions

Common questions about calculating selling price for Australian businesses.

Add together every direct cost of supplying one unit, then divide that total cost by one minus your target margin expressed as a decimal. For example, a $110 total cost at a 35% target margin gives $110 ÷ 0.65 = $169.23 ex GST. Dividing by (1 − margin) is what makes the profit a percentage of the selling price rather than of the cost.

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.