Pricing & Profit calculator
Markup Calculator
Calculate profit and markup from cost and selling price so you can turn raw costs into a workable selling price.
Why use it
- Useful when you start from cost and want to see whether the selling price is leaving enough room.
- Markup is based on cost, not revenue. That is why markup and margin percentages differ.
- A negative markup means the price is currently below cost.
Calculator tool
Use the markup calculator
Calculate profit and markup from cost and selling price so you can turn raw costs into a workable selling price.
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Email it to yourself, send it to a customer, or copy the figures into a quote — all without an account.
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Important note
BizTools.au is designed to make business numbers easier to check, but calculator outputs still need judgment and real-world context.
- Calculator results are general estimates only and depend on the figures entered.
- Examples and summaries are provided for general information, not legal, tax, accounting, payroll, or financial advice.
- Before relying on a result for a real decision, check your assumptions and get qualified advice where needed.
How it works
Understand the formula before you use the result
The calculator uses a simple working formula so you can sense-check the result quickly and explain it clearly inside your business.
Markup formula
Profit = Selling price - Cost
Markup % = (Profit / Cost) × 100
Markup tells you how much profit you add on top of cost before overheads and tax are considered.
Worked example
See the numbers in a realistic scenario
Use the example below as a sense check when you compare the calculator result to a real quote, sale, or pricing decision.
Worked example
Worked example: adding markup to a job cost
A tradie expects a job to cost $800 in direct labour and materials and plans to charge $1,120.
- Cost: $800
- Selling price: $1,120
Calculation steps
- Profit = $1,120 - $800 = $320
- Markup % = ($320 / $800) × 100 = 40%
The quoted price adds $320 on top of direct cost, which equals a 40% markup.
FAQ
Common questions about the markup calculator
These are the practical questions operators usually run into when they apply the result to a real business decision.
Why does markup differ from margin?
Because they use different bases. Markup compares profit to cost. Margin compares profit to selling price. If you swap one for the other, you can underprice work.
Can markup be negative?
Yes. If the selling price is below cost, profit is negative and the markup percentage will also be negative.
Should I price from markup or margin?
Many operators start with cost and markup, but still check margin before sending a quote. Using both calculators together helps avoid confusion.
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