Rent, salaries, utilities, marketing, etc.
Gross Margin
60.0%
Net Margin
35.0%
Net Profit
$35,000.00
Markup
150.0%
Key margin concepts for Singapore businesses
Gross margin vs net margin
Gross margin measures profitability after direct costs (COGS), while net margin accounts for all expenses including operating costs, rent, salaries, and overheads. A healthy gross margin with low net margin suggests high operating costs that need optimisation.
Margin vs markup
Margin is profit as a percentage of revenue (selling price). Markup is profit as a percentage of cost. For example, if you sell something for $100 that costs $60, your margin is 40% but your markup is 66.7%. In Singapore's competitive market, understanding both is crucial for pricing strategy.
GST considerations
If your business is GST-registered, ensure you calculate margins on GST-exclusive figures. Revenue should exclude the 9% GST collected, as this is remitted to IRAS. Using GST-inclusive figures would artificially inflate your revenue and understate your true margins.
Note: This calculator provides general margin analysis. For tax-related profit calculations, use our Company Tax Calculator which accounts for partial tax exemptions and corporate tax rates.
Related Calculators
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Cost of Goods Sold Calculator
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Company Tax Calculator
Calculate Singapore corporate tax at 17% with partial and startup exemptions from IRAS.
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