Price the job. Protect your margin.
Calculate a selling price from a cost and either markup or gross margin.
BEHIND THE NUMBERS
How the calculation works
With markup: selling price = cost × (1 + markup). With gross margin: selling price = cost ÷ (1 − margin). Gross profit = selling price − cost.
- Markup is profit divided by cost; margin is profit divided by selling price.
- Enter recoverable-tax-exclusive costs when appropriate to your business.
- VAT is optional and is added to the calculated price.
Optional standard VAT default: 20%. Official rate source: checked 2026-10-08.
Sources and date checked (3)
Supplier documentation. Product imagery belongs to the respective supplier.
- business.gov.au: pricing strategyChecked 2026-10-09
- HMRC: VAT ratesChecked 2026-10-09
- Business Victoria: margin and markupChecked 2026-10-09
