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Profit Margin Calculator Malaysia

Profit margin = profit ÷ selling price. Sell at RM100 with a RM60 cost and 10% marketplace fees and you make RM 30.00 a unit: a 30% margin but a 50% markup. Break-even is RM 66.67, and a 40% margin needs RM 120.00. Enter your price, cost and fees below.

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Your product

Add commission, payment and service fees together, from your seller centre.

Your profit

Profit per unit

RM 30.00

Margin 30% · markup 50%

Breakdown
Selling priceRM 100.00
Product cost− RM 60.00
Platform and payment fees− RM 10.00
Profit per unitRM 30.00
Profit margin30%
Markup50%
Break-even priceRM 66.67
Price for a 40% marginRM 120.00
Profit on 100 unitsRM 3,000.00

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Margin to markup (and back)

PercentageAs margin → markupAs markup → margin
5%5.3%4.8%
10%11.1%9.1%
15%17.6%13%
20%25%16.7%
25%33.3%20%
30%42.9%23.1%
35%53.8%25.9%
40%66.7%28.6%
50%100%33.3%
60%150%37.5%

How profit margin is worked out

  1. Fees = selling price × fee % + fixed fee per order.
  2. Profit per unit = selling price − cost − fees − shipping you pay − ad cost per unit.
  3. Margin = profit ÷ selling price; markup = profit ÷ cost.
  4. Break-even price = (cost + fixed costs) ÷ (1 − fee %).
  5. Price for a target margin = (cost + fixed costs) ÷ (1 − fee % − target margin).

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Selling price for a RM60 cost by fees and target margin

Fees20% margin30% margin40% margin50% margin
0%RM 75.00RM 85.71RM 100.00RM 120.00
5%RM 80.00RM 92.31RM 109.09RM 133.33
10%RM 85.71RM 100.00RM 120.00RM 150.00
15%RM 92.31RM 109.09RM 133.33RM 171.43
20%RM 100.00RM 120.00RM 150.00RM 200.00

Pricing tips for Malaysian online sellers

  • Use your real fee rate: marketplace commission, payment and service fees differ by category, campaign and programme; take them from your seller centre.
  • Count free shipping and vouchers: any shipping subsidy or seller voucher is a cost per order.
  • Price on margin, not markup: a 30% markup is only a 23.1% margin, before fees.
  • SST is not profit: registered businesses collect it for RMCD.

Sources

Disclaimer: An estimate for pricing. Fees, vouchers, returns and overheads change your real profit.

Frequently asked questions

How do I calculate profit margin?

Profit margin = profit ÷ selling price × 100. Sell at RM100 with a RM60 cost and 10% platform fees: profit is RM100 − RM60 − RM10 = RM 30.00, so the margin is 30%.

What is the difference between margin and markup?

Margin divides profit by the selling price; markup divides it by the cost. RM30 profit on a RM100 price and RM60 cost is a 30% margin but a 50% markup. A 25% margin equals a 33.3% markup, and a 50% margin a 100% markup.

What price do I need for a 40% margin?

Price = cost ÷ (1 − fee % − target margin). With a RM60 cost and 10% fees, RM60 ÷ (1 − 0.10 − 0.40) = RM 120.00. Fees are charged on the selling price, so they must be in the formula.

What is my break-even price?

Break-even price = cost ÷ (1 − fee %). With a RM60 cost and 10% fees it is RM 66.67; selling below that loses money on each order.

How do marketplace fees affect my margin?

Commission, payment and service fees are a percentage of the selling price, so they cut the margin point for point. A RM50 item costing RM20 with 12% fees, a RM1 order fee, RM3 shipping and RM5 ads makes RM 15.00 (30% margin). Check your seller centre for current rates.

What is a good profit margin?

It depends on the product and channel. After fees, shipping and ads, many online sellers aim for a 20% to 30% net margin per order; low-margin products need volume or a higher price to cover returns and overheads.

Should SST be part of my price?

Only if you are registered for sales tax or service tax and the item or service is taxable. Registered businesses charge SST on top of the price and pay it to RMCD, so it is not profit; leave it out of this calculation.

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