How it's calculated
Profit = price − cost. Margin = profit ÷ price. Markup = profit ÷ cost. A 30% margin is a higher markup, because the cost base is smaller than the price.
Profit Margin Calculator
Work out profit, profit margin and markup from your cost and selling price.
Rates basis: Estimate
Cost & price
Profit
RM 30.00
30.00% margin
Profit: RM 30.00
- Profit margin
- 30.00%
- Markup
- 42.86%
- Profit per unit
- RM 30.00
Margin is profit ÷ selling price. Markup is profit ÷ total cost.
Example scenarios
Cost RM60, sell RM100
RM40 profit; that's a 66.7% markup.
40% margin
Cost RM12, sell RM20
RM8 profit on each unit.
40% margin
Understanding the numbers
How the figures above are worked out — the rules, rates and reasoning behind every line.
Estimates only. Results are for planning purposes and may differ from official figures. Confirm against the relevant authority before making financial decisions.
Margin vs markup
Profit margin is your profit as a percentage of the selling price. Markup is your profit as a percentage of the cost. They're easy to confuse.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by selling price; markup is profit divided by cost. The same profit gives a higher markup percentage than margin.
Formula governance
- Formula version
- 2026.1
- Effective date
- 1 Jul 2025
- Government source
- RMCD (SST)
- Last updated
- 3 Oct 2026