The cost price of your product or service (GST-exclusive).
Percentage added on top of the cost price.
Selling Price
$70.00
Profit
$20.00
Markup %
40.0%
Margin %
28.6%
A 40.0% markup = 28.6% margin
A 28.6% margin = 40.0% markup
Everything you need to know about markup and margin for pricing in Singapore
What's the difference between markup and margin?
Markup and margin both measure the profit on a product or service, but they are calculated from different bases. Markup expresses profit as a percentage of the cost price -- for example, if something costs S$50 and you sell it for S$70, your markup is 40% (S$20 / S$50). Margin expresses profit as a percentage of the selling price -- using the same example, your margin would be 28.6% (S$20 / S$70). Because the selling price is always higher than the cost, margin is always a smaller number than markup.
How do I convert markup to margin?
To convert a markup percentage to a margin percentage, use the formula: Margin = Markup / (1 + Markup). For example, a 50% markup (0.50) gives a margin of 0.50 / 1.50 = 0.333, or 33.3%. To go the other way: Markup = Margin / (1 - Margin).
GST considerations in Singapore
When calculating markup and margin for your Singapore business, ensure you work with GST-exclusive prices if you are GST-registered. GST at 9% is charged on top of your selling price and is remitted to IRAS -- it should not be included in your margin calculations. GST registration is mandatory if your taxable turnover exceeds S$1 million.
Business Pricing Tool: This calculator provides accurate markup and margin conversions for Singapore businesses. For complex pricing strategies involving multiple product lines, volume discounts, or GST considerations, consult a qualified chartered accountant.
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Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms