Amazon FBA Profit Calculator
Calculate net margins, ROI, and total Amazon fees instantly.
Understanding Your Amazon FBA Profit Margins
Selling on Amazon via Fulfillment by Amazon (FBA) can be a highly lucrative business model, but only if you understand your numbers. Many sellers focus on "Top Line" revenue, but the true health of your business is found in your Net Profit and Return on Investment (ROI).
Key Components of FBA Profitability
- Referral Fees: This is essentially Amazon's commission for selling on their platform. For most categories, this is 15% of the total selling price.
- Fulfillment (FBA) Fees: This fee covers the picking, packing, and shipping of your orders. This is determined by the size and weight of your product.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit of your product.
- Inbound Shipping: The cost to send your inventory from your supplier or warehouse to an Amazon Fulfillment Center.
FBA Profit Calculation Example
Let's say you sell a yoga mat for $40.00. Your manufacturing cost is $10.00, and it costs $2.00 to ship it to Amazon. If the referral fee is 15% ($6.00) and the FBA fulfillment fee is $7.00, your total expenses before ads would be $25.00. This leaves you with a $15.00 net profit, representing a 37.5% margin and a 125% ROI on your initial product cost.
Why ROI Matters More Than Margin
While margin tells you how much of every dollar you keep, ROI tells you how hard your money is working for you. A high ROI allows you to reinvest capital more aggressively, scaling your inventory and brand faster. Professional Amazon sellers typically aim for at least a 30% margin and a 100% ROI to account for advertising costs and returns.