Markup vs margin calculator (with GST and break-even)
Turn a markup into a margin and back, set a selling price from your cost, add GST (10% in Australia, 15% in New Zealand), and work out your break-even point. Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A 50% markup is only a 33.33% margin.
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Markup and marginBreak-evenMarkup to margin tableWorked examplesFAQ
Break-even calculator
Markup to margin table
| Markup | Margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20% |
| 30% | 23.08% |
| 40% | 28.57% |
| 50% | 33.33% |
| 75% | 42.86% |
| 100% | 50% |
Margin = markup ÷ (1 + markup). Markup = margin ÷ (1 − margin).
Worked examples
- Markup: cost $100 with a 50% markup → price $150, profit $50, margin 33.33%. Add 10% GST → $165 (or $172.50 with NZ 15% GST).
- Margin: cost $100 with a 40% margin → price $166.67, markup 66.67%.
- From a price: cost $100, price $125 → markup 25%, margin 20%.
- Break-even: $10,000 fixed costs, $50 price, $30 variable cost → $20 contribution per unit → 500 units, $25,000 of sales.
FAQ
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by selling price. Selling something that cost $100 for $150 is a 50% markup but a 33.33% margin, because the $50 profit is a third of the price.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 25% markup is 0.25 ÷ 1.25 = 20% margin. To go the other way, markup = margin ÷ (1 − margin), so a 20% margin is a 25% markup.
How do I price for a 30% margin?
Divide the cost by (1 − 0.30). A $70 cost needs a $100 price for a 30% margin. Adding 30% to cost ($91) only gives a 23.08% margin.
Should I include GST in markup and margin?
No. If you’re registered for GST, work out markup and margin on prices excluding GST, then add GST (10% in Australia, 15% in New Zealand) to get the shelf price.
How do I calculate break-even?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). With $10,000 of fixed costs, a $50 price and $30 of variable cost per unit, you need to sell 500 units.
Sources (checked 17 Oct 2026): GST rates from the ATO GST (10%) and Inland Revenue GST (15%). Markup, margin and break-even are standard formulas, shown above.
General information, not tax or financial advice. Work out your markup and margin on prices excluding GST. GST isn't profit if you're registered.