Markup and margin calculator
Set a selling price from cost using a target margin or markup, and see the other figure.
Margin and markup here are before GST, overheads and tax.
How this calculator works
Margin = profit ÷ selling price. Markup = profit ÷ cost. To hit a margin, price = cost ÷ (1 − margin). To apply a markup, price = cost × (1 + markup).
Worked example: an item costing $40 needs a price of $57.14 for a 30% margin, which is a 42.86% markup. Adding a 30% markup instead gives $52.00, which is only a 23.08% margin. Mixing the two up is a common pricing mistake.
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