Amazon FBA Profit Calculator
Calculate your net margins, ROI, and total Amazon fees instantly.
Results Summary
Total Amazon Fees: $0.00
Total Expenses: $0.00
Net Profit: $0.00
Profit Margin: 0%
ROI: 0%
Understanding Your Amazon FBA Profitability
Selling on Amazon using the Fulfillment by Amazon (FBA) model offers massive scale, but it comes with a complex fee structure. To ensure your business is sustainable, you must look beyond just the "Selling Price" and "Cost of Goods."
Key Components of the Calculation:
- 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 size and weight of your item.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit of your product.
- Storage Fees: Monthly costs for keeping your inventory in Amazon's warehouses. Note that these increase significantly during Q4 (October – December).
Example Calculation:
Imagine you sell a Yoga Mat for $40.00. Your manufacturing cost is $10.00, and shipping to Amazon costs $2.00. The Amazon Referral Fee (15%) is $6.00. If your FBA fulfillment fee is $7.00 and storage is $0.50, your total expenses are $25.50. Your net profit would be $14.50, resulting in a 36.25% margin and a 145% ROI.
Why ROI and Margin Matter
While profit margin tells you how much of every dollar you keep, ROI (Return on Investment) tells you how hard your money is working for you. A high ROI allows you to reinvest in inventory faster and scale your Amazon FBA business more aggressively.