Tax-aware pricing tool
Sales Tax / GST Margin Helper
See your real profit margin after GST or sales tax, and work out what you need to charge to hit your target margin.
Educational guidance
This calculator is an educational tool based on standard sales tax and GST/VAT margin formulas. It does not replace advice from a qualified accountant or tax professional. Always confirm tax treatment and rates for your jurisdiction before making pricing decisions.
If you are not registered to collect GST/VAT or sales tax, tax may behave more like a cost than a pass-through. Talk to your accountant about how to handle this in your pricing.
Calculator
Strip tax out of the price before judging the margin
Calculation mode
Shared tax setup
Currency is display only. It does not convert values; it only controls how money is shown in the results.
Editable even after choosing a preset.
Tax region preset
Tax mode
Analyse existing price
Use this when you already have a selling price and want to see the real margin after tax is removed.
Use 0 to hide the target comparison.
Results
True margin after tax at a glance
True margin
37.1%
Calculated on revenue before tax, not on the displayed tax-inclusive price.
Tax amount per unit
A$3.18
Net revenue per unit
A$31.82
Gross profit per unit
A$11.82
Markup
59.1%
Apparent margin
42.9%
Margin gap
5.7%
Target comparison
Below target 2.9%
Tax impact
At this price, tax takes A$3.18 of each sale. Your true margin is 37.1%, not 42.9% if you accidentally calculate on the tax-inclusive price.
Compared with your target of 40.0%, the current price is below target by 2.9%.
Breakdown
What tax changes in the current price
Selling price per unit
A$35.00
Customer pays per unit
A$35.00
Net revenue before tax
A$31.82
Tax amount per unit
A$3.18
Gross profit per unit
A$11.82
True margin
37.1%
Markup
59.1%
Margin gap from tax-inclusive thinking
5.7%
How this is calculated
How your current tax-aware margin numbers are calculated
This walkthrough updates live from the form so you can see how tax is stripped out, how true margin is measured on revenue before tax, and how target pricing is solved.
Open the live calculation walkthroughHide the live calculation walkthroughUses your current tax setup, price, and target inputs.
How it works
What this tax-aware pricing helper is helping you see
The goal is not only to produce a number. It is to separate tax from revenue, explain the difference between margin and markup, and show how much profit the business actually keeps.
Inclusive vs on-top tax
When the price includes GST or VAT, part of the displayed price is tax that the business does not keep as revenue. When tax is added on top, the listed price usually stays closer to the revenue base used for margin.
Why true margin uses revenue before tax
True margin should be measured against net revenue before tax because pass-through tax is not part of the business's real takings. Using the tax-inclusive price can make margin look healthier than it is.
How target margin and markup differ
Margin measures profit as a share of revenue, while markup measures profit as a share of cost. They are related, but they answer different pricing questions and produce different percentages.
How tax changes target pricing
Tax does not replace pricing logic. You still solve for the net price needed to support the target margin or markup, then layer tax treatment on top so the final customer-facing price remains realistic.
FAQ
Common questions
Short answers to the tax-aware pricing and margin questions makers, Etsy sellers, and small brands ask most often.
What is the difference between margin and markup?
Margin is profit divided by revenue, while markup is profit divided by cost. They are related, but they are not interchangeable and they produce different percentages.
Why does my margin change when I include GST or sales tax?
Tax changes margin when the displayed selling price includes tax because part of that price is tax you do not keep as revenue. The margin should be measured on revenue before tax, not on the tax-inclusive amount.
Should I calculate margin on prices including or excluding tax?
In most tax-registered setups, margin should be calculated on revenue excluding tax because GST, VAT, or sales tax is generally a pass-through amount rather than part of the business's real revenue.
How do I find the right price for a target margin after GST?
Start with cost, solve for the net price needed to reach the target margin before tax, then add tax if your customer-facing price includes GST or VAT. That gives you a more realistic selling price target.
How do I use this tool if tax is added on top, like US sales tax?
Use the `Tax added on top` mode. In that setup, the selling price before tax is usually the revenue base for margin, and the tax amount is shown separately as a checkout add-on.
Does this tool replace advice from my accountant?
No. This helper uses standard educational formulas for tax-aware pricing and margin analysis, but it does not replace jurisdiction-specific advice from a qualified accountant or tax professional.
Related tools
Connect tax-aware pricing back to the rest of the business
Tax treatment is only one layer of pricing. The calculators below help tie margin decisions back to full product costs, platform fees, packaging, and break-even targets.
Etsy Fee Calculator
Estimate Etsy fees, profit, and margin before you list.
Handmade Pricing Calculator
Build a profitable price from real costs and target margin.
Break-even Calculator for Makers
See how many units or how much revenue you need to break even.
Packaging Cost Calculator
Calculate packaging cost per order, per item, and its share of order value.