Question 1

What is the difference between markup and margin?

Accepted Answer

Margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost price. A 50% markup equals a 33.3% margin.

Question 2

Do I need to account for GST in my selling price?

Accepted Answer

Yes. After setting your pre-tax selling price for the desired margin, GST is added on top so you quote the final all-inclusive price to your customer.

Markup and Profit Margin Calculator