Ramsey Mortgage Calculator

Amazon FBA Profit & Margin Calculator

Calculation Breakdown

Amazon Referral Fee: $0.00

Total Expenses: $0.00

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Net Profit: $0.00

Net Margin: 0.00%

ROI (Return on Investment): 0.00%

How to Calculate Amazon FBA Profits

Understanding your Amazon FBA (Fulfillment by Amazon) profit margins is critical for any e-commerce business. To determine your take-home pay, you must subtract all Amazon fees and operational costs from your gross sales price.

Key Components of FBA Math:

• Unit Cost (COGS): The price you paid the manufacturer to produce the item.
• Inbound Shipping: The cost to ship your inventory from your warehouse or supplier to Amazon's fulfillment centers.
• Amazon Referral Fee: Typically 15% of the total sales price, charged by Amazon for the privilege of selling on their marketplace.
• FBA Fulfillment Fee: The flat fee charged per unit to pick, pack, and ship your item to the customer. This depends on weight and dimensions.
• Monthly Storage: Amazon charges a fee based on the volume (cubic feet) your product occupies in their warehouse.

The Formulas:

Net Profit = Sales Price – (COGS + Shipping + Referral Fee + FBA Fee + Storage)
Net Margin = (Net Profit / Sales Price) * 100
ROI = (Net Profit / COGS) * 100

Example Calculation

If you sell a yoga mat for $40.00:

• Product Cost: $10.00
• Inbound Shipping: $2.00
• Amazon Referral Fee (15%): $6.00
• FBA Fulfillment Fee: $5.50
• Storage Fee: $0.50

Your total costs would be $24.00. Your net profit would be $16.00. This represents a 40% profit margin and a 160% ROI.

function calculateFBAProfit() { var salesPrice = parseFloat(document.getElementById('fba_sales_price').value); var productCost = parseFloat(document.getElementById('fba_product_cost').value); var inboundShipping = parseFloat(document.getElementById('fba_shipping_inbound').value); var fulfillmentFee = parseFloat(document.getElementById('fba_fulfillment_fee').value); var referralPercent = parseFloat(document.getElementById('fba_referral_percent').value); var storageFee = parseFloat(document.getElementById('fba_storage_fee').value); if (isNaN(salesPrice) || isNaN(productCost)) { alert("Please enter at least the Sales Price and Product Cost."); return; } // Calculation Logic var referralFeeValue = (referralPercent / 100) * salesPrice; var totalExpenses = productCost + inboundShipping + fulfillmentFee + referralFeeValue + storageFee; var netProfit = salesPrice – totalExpenses; var margin = (netProfit / salesPrice) * 100; var roi = (productCost > 0) ? (netProfit / productCost) * 100 : 0; // Display Logic document.getElementById('res_referral_val').innerText = '$' + referralFeeValue.toFixed(2); document.getElementById('res_total_expenses').innerText = '$' + totalExpenses.toFixed(2); document.getElementById('res_net_profit').innerText = '$' + netProfit.toFixed(2); document.getElementById('res_net_margin').innerText = margin.toFixed(2) + '%'; document.getElementById('res_roi').innerText = roi.toFixed(2) + '%'; // Show results div document.getElementById('fba_results').style.display = 'block'; // Color coding profit if (netProfit < 0) { document.getElementById('res_net_profit').style.color = '#d32f2f'; } else { document.getElementById('res_net_profit').style.color = '#2e7d32'; } }