Markup and margin calculator

Enter a product’s unit cost and markup percentage to calculate a selling price, gross profit per unit and resulting gross margin. The displayed price is before GST and excludes other costs unless you include them in unit cost.

Markup & margin

Product pricing

Calculate a product price from unit cost and markup, then see the gross profit and margin that price creates. Markup and margin use different bases, so the calculator shows both the price and resulting margin.

Unit cost (AUD)

Markup on cost (%)

Selling price, before GST

$60.00

Gross profit per unit$20.00

Gross margin33.3%

Formula: price = cost × (1 + markup). Margin = gross profit ÷ selling price.

Markup is not the same as margin

A 50% markup on a $40 cost creates a $60 selling price and a 33.3% gross margin. This simple estimate excludes overheads, payment fees, discounts, shipping and tax.

How to use this calculator

Enter the product cost and the markup percentage you want to apply. The calculator adds that percentage to cost to produce a selling price, then calculates gross margin as profit divided by selling price.

Formula and example

Markup is calculated as a percentage of cost. Margin is calculated as a percentage of the selling price. A 50% markup therefore does not equal a 50% margin.

Related calculators

GST calculator — Add or remove GST from a price and see the GST component.
Freelance hourly rate — Plan an hourly rate from your pay goal, costs and billable time.
Break-even sales — Estimate the monthly revenue needed to cover business costs.

Guides for this calculator

Frequently asked questions

What is the difference between markup and margin?

Markup is profit divided by cost. Gross margin is profit divided by selling price. A 50% markup does not produce a 50% gross margin.

How does this calculator set a selling price?

It multiplies unit cost by one plus the markup rate, then calculates gross profit and gross margin from the resulting price.

Does the result include GST and overheads?

The selling price is shown before GST. The calculation excludes overheads, shipping, transaction fees and other expenses unless they are part of your unit-cost input.

Can I calculate a price from a target margin?

This tool starts with markup. See the linked target-margin guide for the formula: cost divided by one minus the target margin.