Interest Rate Differential Penalty Calculator

function calculateFBAProfit() { var salePrice = parseFloat(document.getElementById('salePrice').value) || 0; var itemCost = parseFloat(document.getElementById('itemCost').value) || 0; var shipToAmazon = parseFloat(document.getElementById('shipToAmazon').value) || 0; var referralRate = parseFloat(document.getElementById('referralFeeRate').value) || 0; var fbaFee = parseFloat(document.getElementById('fbaFee').value) || 0; var otherCosts = parseFloat(document.getElementById('otherCosts').value) || 0; if (salePrice 0 ? (netProfit / itemCost) * 100 : 0; document.getElementById('netProfit').innerText = "$" + netProfit.toFixed(2); document.getElementById('marginPercent').innerText = marginPercent.toFixed(2) + "%"; document.getElementById('roiPercent').innerText = roiPercent.toFixed(2) + "%"; document.getElementById('totalFeesDisplay').innerText = "$" + totalAmazonFees.toFixed(2); document.getElementById('totalLandedDisplay').innerText = "$" + totalLandedCost.toFixed(2); document.getElementById('results').style.display = 'block'; var resultColor = netProfit >= 0 ? "#2e7d32" : "#d32f2f"; document.getElementById('netProfit').style.color = resultColor; document.getElementById('marginPercent').style.color = resultColor; document.getElementById('roiPercent').style.color = resultColor; }

How to Use the Amazon FBA Profit Calculator

Calculating your potential margins is the most critical step for any Amazon seller. This FBA Profit Calculator helps you determine if a product is worth sourcing by breaking down every cost associated with the Fulfillment by Amazon program.

Understanding the Fee Structure

To get an accurate result, you must account for the following variables:

• Selling Price: The final price the customer pays on Amazon.
• COGS (Cost of Goods Sold): The price you pay the manufacturer per unit.
• Referral Fee: Amazon's "commission" for selling on their platform, typically 15% for most categories.
• FBA Fulfillment Fee: The cost for Amazon to pick, pack, and ship your item. This is based on the weight and dimensions of the product.
• Landed Cost: The sum of your product cost and shipping costs to get the inventory to Amazon's warehouses.

What is a Good Profit Margin for FBA?

In the world of Amazon ecommerce, a healthy net profit margin typically falls between 15% and 25%. While some high-volume sellers survive on 10%, a higher margin provides a buffer for unexpected costs like PPC advertising, returns, or price wars with competitors.

Example Calculation

Suppose you are selling a yoga mat for $35.00. Your manufacturing cost is $10.00, and it costs $1.50 to ship it to Amazon. If the FBA fee is $7.50 and the referral fee is $5.25 (15%), your total expenses are $24.25. Your net profit would be $10.75, resulting in a 30.7% profit margin and a 107.5% ROI.

Tips to Increase Your FBA Profits

1. Optimize Packaging: Reducing the size or weight of your product packaging can drop you into a lower FBA fee tier.
2. Bulk Shipping: Use sea freight instead of air freight to lower your "Shipping to Amazon" costs.
3. Monitor Storage Fees: Amazon increases storage fees during Q4 (October–December). Ensure your inventory turnover is high to avoid long-term storage fees.