Interest Rates Today California 30 Year Fixed Calculator

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Amazon FBA Profit Calculator

Calculate your net profit, margins, and ROI after Amazon fees

Total Fees
$0.00
Net Profit
$0.00
Profit Margin
0%
ROI
0%

How to Calculate Amazon FBA Profitability

Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but the fee structure can be complex. To accurately determine your "take-home" pay, you must look beyond the selling price and account for every variable cost.

Key Metrics Explained

  • Referral Fee: This is Amazon's commission for selling on their platform. For most categories, this is 15% of the total selling price.
  • Fulfillment Fee: A flat fee per unit that covers picking, packing, and shipping your product to the customer. This depends on the weight and dimensions of your product.
  • COGS (Cost of Goods Sold): The total cost to manufacture or purchase the product from your supplier.
  • PPC Spend: Your marketing costs. Divide your total monthly ad spend by the number of units sold to get your per-unit advertising cost.
Realistic Example:
You sell a kitchen gadget for $25.00. Your manufacturing cost is $5.00 and it costs $1.00 to ship it to Amazon's warehouse. Amazon takes a 15% referral fee ($3.75) and charges a fulfillment fee of $4.50. After accounting for $0.25 in storage and $2.50 in PPC ads, your net profit is $8.00 per unit.
Margin: 32% | ROI: 133% (based on inventory cost).

Why the "Rule of Threes" Matters

Experienced Amazon sellers often use the "Rule of Threes" for quick product sourcing. Ideally, 1/3 of your revenue goes to product costs, 1/3 goes to Amazon fees and marketing, and 1/3 is your net profit. If your fees consume more than 40% of your revenue, you may need to increase your price or optimize your logistics.

function calculateFBAProfit() { var sellPrice = parseFloat(document.getElementById('sellingPrice').value) || 0; var prodCost = parseFloat(document.getElementById('productCost').value) || 0; var shipToAmz = parseFloat(document.getElementById('shippingToAmazon').value) || 0; var referralRate = parseFloat(document.getElementById('referralFeeRate').value) || 0; var fulfillFee = parseFloat(document.getElementById('fulfillmentFee').value) || 0; var storageFee = parseFloat(document.getElementById('storageFee').value) || 0; var adSpend = parseFloat(document.getElementById('adSpend').value) || 0; if (sellPrice <= 0) { alert("Please enter a valid selling price."); return; } // Calculations var referralAmount = (referralRate / 100) * sellPrice; var totalFees = referralAmount + fulfillFee + storageFee; var totalExpenses = prodCost + shipToAmz + totalFees + adSpend; var netProfit = sellPrice – totalExpenses; var margin = (netProfit / sellPrice) * 100; var roi = (netProfit / (prodCost + shipToAmz)) * 100; // Update UI document.getElementById('resTotalFees').innerText = "$" + totalFees.toFixed(2); document.getElementById('resNetProfit').innerText = "$" + netProfit.toFixed(2); document.getElementById('resMargin').innerText = margin.toFixed(2) + "%"; document.getElementById('resROI').innerText = isFinite(roi) ? roi.toFixed(2) + "%" : "0%"; // Handle negative profit styling var profitElement = document.getElementById('resNetProfit'); if (netProfit < 0) { profitElement.style.color = "#d32f2f"; } else { profitElement.style.color = "#2e7d32"; } document.getElementById('resultsArea').style.display = "block"; // Scroll to results on mobile if (window.innerWidth < 768) { document.getElementById('resultsArea').scrollIntoView({ behavior: 'smooth' }); } }

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