Markup vs Margin Calculator (Australia)
Turn a markup on materials or a job into the profit margin you actually make, or find the markup you need to hit a target margin. Results show ex-GST and inc-GST prices. It runs in your browser, and nothing you enter is sent anywhere.
Last updated 29 Oct 2026Figures for 2026-27Sources: ATO, SRO Victoria, ASIC Moneysmart
Your results
- Sell price (ex GST)
- Sell price (inc GST, if registered)
- Profit
- Your actual margin
- Markup needed for target margin
- Price at target margin (ex GST)
- Price at target margin (inc GST)
- Profit at target margin
Not financial or tax advice. This is a general estimate from the figures you enter. It does not consider your personal circumstances. Check with a registered tax agent or licensed adviser before acting.
Quoting a job? Grab the free Simple Quote Template: ABN, GST on or off, totals done for you.
How it's calculated
- Sell price = cost × (1 + markup %).
- Profit = sell price − cost.
- Margin = profit ÷ sell price × 100.
- Markup needed for a target margin = margin ÷ (1 − margin).
- Price at target margin = cost ÷ (1 − margin).
- Inc-GST price = ex-GST price × 1.10.
| Markup on cost | Margin on price |
|---|---|
| 10% | 9.1% |
| 15% | 13.0% |
| 20% | 16.7% |
| 25% | 20.0% |
| 30% | 23.1% |
| 42.9% | 30.0% |
| 50% | 33.3% |
| 100% | 50.0% |
Worked example
A sparky buys $1,000 of cable and fittings (ex GST) and adds a 25% markup. The materials go on the quote at $1,250 ex GST, or $1,375 inc GST. The $250 profit is a 20% margin, not 25%. To make a 30% margin, the markup needs to be 42.9%, a price of $1,428.57 ex GST.
Why it matters
Mixing the two up is one of the easiest ways to underprice. If you need a 20% margin to cover overheads and profit, and you add a 20% markup, you're short on every job. Your overheads come out of the price, so margin is the number to check. Work out your labour rate separately with the tradie charge-out rate calculator.
Sources & assumptions
- GST is 10%, credits for GST on business purchases and the $75,000 registration threshold: ATO: Registering for GST.
- Markup and margin are standard pricing maths, with no regulated rates. The calculator ignores discounts, rounding and payment fees.
Last checked 29 October 2026. General information, not advice.
FAQ
What is the difference between markup and margin?
Markup is profit as a percentage of your cost. Margin is profit as a percentage of the sell price. The same job always has a lower margin than markup: a 25% markup is a 20% margin.
Is a 20% markup the same as a 20% margin?
No. A 20% markup on $1,000 of materials gives $200 profit on a $1,200 price, which is a 16.7% margin. To make a true 20% margin you need a 25% markup.
How do I convert margin to markup?
Markup = margin ÷ (1 − margin). For a 30% margin that's 0.30 ÷ 0.70 = 42.9% markup. To go the other way, margin = markup ÷ (1 + markup).
What markup should a tradie put on materials?
There's no set rule. Many trades add somewhere around 10–30% on materials to cover ordering, pick-up, storage, waste and warranty risk, but check what's normal in your trade and area. Price labour separately from your charge-out rate.
Do I calculate markup before or after GST?
Before. Work markup and margin on ex-GST cost and price. If you're registered for GST, claim the GST on your purchases as a credit and add 10% to your sell price (ATO). If you're not registered, your cost includes the GST you paid and you don't add GST.