1. What is the Margin and VAT Calculator?

This calculator helps Australian businesses determine the final selling price of goods or services by accounting for both the desired profit margin and the 10% Goods and Services Tax (GST).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Cost \) — Base cost of the product/service (AUD)
• \( Margin\% \) — Desired profit margin (percentage)
• \( GST \) — Australia's 10% Goods and Services Tax

Explanation: The formula first calculates the pre-GST price that achieves your desired margin, then adds the mandatory 10% GST to arrive at the final selling price.

3. Importance of Margin Calculation

Details: Accurate margin calculation ensures businesses cover all costs, achieve desired profitability, and comply with Australian tax regulations by properly accounting for GST.

4. Using the Calculator

Tips: Enter your base cost in AUD and desired margin percentage. The margin must be between 0-100%. The calculator will show the final price including GST.

5. Frequently Asked Questions (FAQ)

Q1: Why is GST added after margin?
A: In Australia, GST is calculated on the final selling price. This calculator ensures your margin is preserved after accounting for the 10% tax.

Q2: What's the difference between markup and margin?
A: Margin is percentage of the final price, while markup is percentage of cost. This calculator uses margin for more accurate profit calculation.

Q3: Is GST always 10% in Australia?
A: Most goods and services have 10% GST, but some items may be GST-free (like basic foods) or input-taxed.

Q4: Can I use this for services as well as products?
A: Yes, the calculation works the same way for both products and services in Australia.

Q5: How do I account for other expenses?
A: Your base cost should include all expenses except the desired profit margin and GST. For complex pricing, consult an accountant.