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Profit Margin Calculator

Enter your cost and your selling price to see the profit, the profit margin and the markup.

This result is an estimate only. Check with your bank or the relevant authority before making decisions.

How it is calculated

Profit = selling price − cost
Profit margin = profit ÷ selling price × 100
Markup = profit ÷ cost × 100

To set a price from a markup, use the markup calculator. For a discount on a price, use the discount calculator.

Worked example

Cost RM80, selling price RM100:

Profit: 100 − 80 = RM20
Profit margin: 20 ÷ 100 = 20%
Markup: 20 ÷ 80 = 25%

Why your number may differ

This is the gross margin. It leaves out rent, wages, tax and other overheads, which reduce what you actually keep. Selling prices may include or exclude SST, so use the price before tax.

Frequently asked questions

What is profit margin?

Profit margin is profit as a percentage of the selling price. It shows how many sen of every ringgit of sales you keep as profit.

What is the difference between margin and markup?

Margin is profit divided by the selling price. Markup is profit divided by the cost. Cost RM80 and price RM100 gives a 20% margin and a 25% markup.

Does the cost include everything?

Only what you enter. Include delivery, packaging and fees if you want the true profit, and remember overheads such as rent are not included.