Mortgage Rates Today 15 Year Fixed Calculator

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Amazon FBA Profit Calculator

Calculate your net profit, margins, and ROI for Amazon FBA products.

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

How to Calculate Amazon FBA Profit

Selling on Amazon FBA (Fulfillment by Amazon) involves various costs that can quickly eat into your margins. To find your true net profit, you must subtract all direct and indirect costs from your selling price.

The FBA Profit Formula:
Net Profit = Selling Price – (Product Cost + Shipping + Referral Fee + Fulfillment Fee + Storage/Misc)

Understanding the Key Metrics

  • Referral Fees: This is the commission Amazon takes for selling on their platform. For most categories, this is 15%.
  • Fulfillment Fees: This covers picking, packing, and shipping your product to the customer. It is based on the weight and dimensions of your item.
  • ROI (Return on Investment): This shows how much profit you make compared to what you spent on inventory and shipping. A healthy FBA business usually aims for an ROI of 100% or higher.
  • Profit Margin: This is the percentage of the sale price that is pure profit. Most successful FBA sellers aim for at least a 20-30% margin.

Real-World Example

Suppose you are selling 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 charges a 15% referral fee ($3.75) and an FBA fulfillment fee of $5.00.

In this case, your total costs are $14.75 ($5+$1+$3.75+$5). Your net profit is $10.25. Your profit margin would be 41% and your ROI would be 170% ($10.25 profit / $6.00 investment).

function calculateAmazonFBA() { var salePrice = parseFloat(document.getElementById('fba_sale_price').value) || 0; var prodCost = parseFloat(document.getElementById('fba_prod_cost').value) || 0; var shipCost = parseFloat(document.getElementById('fba_ship_cost').value) || 0; var refPct = parseFloat(document.getElementById('fba_ref_fee_pct').value) || 0; var fbaFee = parseFloat(document.getElementById('fba_fulfillment').value) || 0; var misc = parseFloat(document.getElementById('fba_misc').value) || 0; // Logic var referralFeeAmount = salePrice * (refPct / 100); var totalAmazonFees = referralFeeAmount + fbaFee + misc; var totalExpenses = prodCost + shipCost + totalAmazonFees; var netProfit = salePrice – totalExpenses; var margin = 0; if (salePrice > 0) { margin = (netProfit / salePrice) * 100; } var roi = 0; var totalInvestment = prodCost + shipCost; if (totalInvestment > 0) { roi = (netProfit / totalInvestment) * 100; } // Display document.getElementById('fba_results_area').style.display = 'block'; document.getElementById('res_total_fees').innerHTML = "$" + totalAmazonFees.toFixed(2); document.getElementById('res_net_profit').innerHTML = "$" + netProfit.toFixed(2); document.getElementById('res_margin').innerHTML = margin.toFixed(2) + "%"; document.getElementById('res_roi').innerHTML = roi.toFixed(2) + "%"; // Color coding for profit if (netProfit > 0) { document.getElementById('res_net_profit').style.color = "#2e7d32"; } else { document.getElementById('res_net_profit').style.color = "#d32f2f"; } }

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