Product Pricing Calculator
Set a selling price from your unit cost and target margin, showing the resulting markup percentage in dollars.
Your results
Calculation breakdown
- Selling price
- Unit cost ÷ (1 − Target margin)
- Markup
- ((Price − Cost) ÷ Cost) × 100
Worked example
A gift shop with a $20 unit cost wanting a 40% margin should price the item at $33.33, a markup of about 67%.
Assumptions
- Figures are ex-GST; add GST separately for GST-registered businesses selling to consumers.
- Margin is calculated on selling price, not on cost.
- Check the resulting price against market rates before finalising.
How this calculator works
Enter your unit cost and desired profit margin to see the recommended selling price and the equivalent markup percentage. This uses standard cost-plus pricing logic used by Australian retailers and manufacturers.
Frequently asked questions
What's the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. They give different numbers for the same dollar profit.
Should GST be included in the price shown?
This calculator works on ex-GST costs and prices; add GST separately for the price charged to consumers if you're registered.
What if my target margin isn't achievable?
If competitors price lower than your cost-plus price, you'll need to cut costs or accept a smaller margin to stay competitive.
Results are estimates only and are not financial, tax, legal or credit advice.