The price you quote includes GST. This works it out.
A free markup calculator from InvoiceSonic, Australian invoicing software for tradies and sole traders. Australian customers are quoted GST-inclusive prices, so the number you write on the quote is not the number the markup produces. Enter your cost and markup to get the ex-GST price, the 10% GST, and the inc-GST figure to put in front of the client.
Markup is measured against your cost, margin against your selling price. They are never the same number, and confusing them always underprices the job.
| Markup | Margin | $1,000 cost sells for |
|---|---|---|
| 20% | 16.7% | 1,200.00 |
| 30% | 23.1% | 1,300.00 |
| 50% | 33.3% | 1,500.00 |
| 100% | 50.0% | 2,000.00 |
See the full markup-to-margin table →
Markup % = (price − cost) ÷ cost × 100. Margin % = (price − cost) ÷ price × 100. To convert: margin = markup ÷ (100 + markup) × 100.
Mark up your ex-GST cost to get your ex-GST price, then add 10% GST to that figure. Applying markup to a GST-inclusive cost marks up the tax as well — it inflates the quote with money that was never yours to keep, and it is the most common pricing error on Australian quotes.
Before. Mark up your ex-GST cost to get your ex-GST selling price, then add 10% GST to that. Adding markup to a GST-inclusive cost silently marks up the tax as well, which inflates your price and is not yours to keep.
If you are registered for GST, you charge 10% on the full supply including the marked-up materials, and you claim back the GST on what you paid for them. The markup itself is part of your taxable supply. Check specifics with your accountant or the ATO.
Commonly 10–25% on materials, with labour priced separately at an hourly or day rate. The markup covers sourcing, pickup, storage, and carrying the cost until the client pays. Some head-contract and government contracts cap material markup, so check the contract before you quote.
Markup is measured against your cost, margin against your selling price, and they are never the same number. A 50% markup is a 33.3% margin. Pricing a job on a 20% 'markup' when you needed a 20% margin costs you roughly 4% of the job every time.
In Australia you must register once your GST turnover reaches $75,000 a year, or if you drive for a rideshare service. Below that it is optional. If you are not registered you do not add GST, and you cannot issue a tax invoice — just an invoice. General information only, not tax advice; confirm at ato.gov.au or with your accountant.
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