Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A product that costs RM60 and sells for RM100 has a 40% margin and a 66.7% markup.
Profit Margin and Markup Calculator
What You Really Keep From Each Sale
Enter your price and costs to see margin, markup and profit after Shopee, Lazada or TikTok Shop fees, and the price you need for a target margin. Fee presets checked 21 October 2026.
| Platform fees | RM7.43 |
|---|---|
| Profit | RM12.57 |
| Net margin (after fees and costs) | 25.1% |
| Gross margin (price minus product cost) | 50.0% |
| Markup on product cost | 100.0% |
| Price for your target margin | RM46.12 |
Presets cover the standard fees only. Free shipping, cashback, live and voucher programmes charge extra, and rates change often, so check your own Seller Centre.
Marketplace Fee Presets
Standard fees in Malaysia, including 8% SST, as of 21 October 2026.
| Platform | Commission | Transaction or payment fee | Per order |
|---|---|---|---|
| Shopee | By category | 3.78% | RM0.54 |
| Lazada | By category | 2.16% | None |
| TikTok Shop | By category, 0% to about 19% | 3.78% | RM0.54 |
Margin, Markup and Marketplace Fees
Margin and markup are not the same number
Margin divides profit by the selling price. Markup divides it by the cost. A RM60 item sold at RM100 makes RM40, which is a 40% margin and a 66.7% markup. Sellers who confuse the two price too low: a 40% markup is only a 28.6% margin.
Gross margin versus net margin
Gross margin only takes off the product cost. Net margin, as this calculator uses it, also takes off platform fees and the other costs you pay per order. Net margin is the number that pays for your ads, staff and rent.
What marketplaces take
Shopee, Lazada and TikTok Shop each charge a commission by product category, plus a transaction or payment fee on the order value. Shopee and TikTok Shop also charge RM0.54 per order. Optional programmes add more: free shipping, cashback, live selling and voucher programmes can each add several percent. Our TikTok Shop selling guide lists every TikTok fee with an example order.
Pricing for a target margin
Percentage fees grow with the price, so you cannot just add your target margin to the cost. The formula is: price = (product cost + other costs + fixed fee) ÷ (1 − percentage fees − target margin). If the percentage fees plus your target reach 100%, no price works, and the calculator says so.
When your own website pays off
Pick "No platform" to compare. Your own store has no commission, only a payment gateway fee of about 2% to 3%, but you pay for the traffic. Many sellers keep marketplaces for discovery and move repeat buyers to their own store. See how we build online stores for Malaysian brands.
Sources
FAQ
Margin and Markup Questions
Take the selling price, subtract every cost of the sale, and divide by the selling price. For marketplace sellers, the costs include commission, transaction fees, the per-order fee, shipping you pay and packaging, not just the product cost.
Each charges a commission that depends on your product category, plus a payment or transaction fee. In October 2026, Shopee and TikTok Shop charge a 3.78% transaction fee and RM0.54 per order, and Lazada about 2.16%, all including 8% SST. Optional programmes such as free shipping or cashback add more.
It depends on the category and how much you spend on ads. Many marketplace sellers aim for a net margin of 15% to 30% after fees and before advertising. Below 10%, a single return or price war can wipe out the profit.
Add your product cost, other per-order costs and fixed fee, then divide by 1 minus the percentage fees minus your target margin. The calculator does this in the 'Price for your target margin' line.
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