Estimate your net margins and ROI after all Amazon fees
Total Amazon Fees:
Total Expenses:
Net Profit per Unit:
Profit Margin:
Return on Investment (ROI):
Understanding Amazon FBA Profitability
Selling on Amazon via Fulfillment by Amazon (FBA) is an excellent way to scale an e-commerce business, but the fee structure can be complex. To ensure your business remains sustainable, you must calculate your "landed" profit after all hidden costs.
Key Metrics in FBA Calculations
COGS (Cost of Goods Sold): This is the manufacturing or wholesale cost of your product. Always include the price of packaging.
Amazon Referral Fee: This is essentially a commission Amazon takes for bringing you the customer. For most categories, this is 15% of the total sale price.
Fulfillment Fee: This covers the picking, packing, and shipping of your item from Amazon's warehouse to the customer. It is based on the weight and dimensions of the product.
PPC Spend: Most Amazon sellers use Sponsored Products to drive traffic. Dividing your total monthly ad spend by your total units sold gives you your "Ad Spend per Unit."
FBA Calculation Formula
The logic behind our Amazon FBA Profit Calculator follows this standard industry formula:
Net Profit = Sale Price – (COGS + Shipping to Amazon + Referral Fee + FBA Fulfillment Fee + PPC Spend)
Example Calculation
If you sell a yoga mat for $40.00:
COGS: $10.00
Shipping to Warehouse: $1.50
Referral Fee (15%): $6.00
FBA Fee: $7.50
Ad Spend per Unit: $3.00
Total Expenses: $28.00
Net Profit: $12.00
Margin: 30%
Strategies to Improve Your FBA Margins
If your calculator results show a margin below 20%, you are in a risky zone. Here are three ways to increase profitability:
Reduce Packaging Size: Since FBA fees are heavily tied to dimensions, reducing the box size by even half an inch can move your product into a lower fee tier.
Negotiate COGS: As your volume increases, work with your supplier to lower the unit cost.
Optimize PPC: Focus your ad spend on high-converting keywords to lower your "per unit" marketing cost.
function calculateFBAProfit() {
var price = parseFloat(document.getElementById('fba_sale_price').value) || 0;
var cogs = parseFloat(document.getElementById('fba_cogs').value) || 0;
var shipIn = parseFloat(document.getElementById('fba_shipping_inbound').value) || 0;
var refRate = parseFloat(document.getElementById('fba_referral_fee').value) || 0;
var fbaFee = parseFloat(document.getElementById('fba_fulfillment_fee').value) || 0;
var ppc = parseFloat(document.getElementById('fba_ppc_spend').value) || 0;
if (price 0 ? (netProfit / (cogs + shipIn)) * 100 : 0;
document.getElementById('res_total_fees').innerText = "$" + totalAmazonFees.toFixed(2);
document.getElementById('res_total_expenses').innerText = "$" + totalExpenses.toFixed(2);
document.getElementById('res_net_profit').innerText = "$" + netProfit.toFixed(2);
document.getElementById('res_margin').innerText = margin.toFixed(2) + "%";
document.getElementById('res_roi').innerText = roi.toFixed(2) + "%";
document.getElementById('fba_results_area').style.display = 'block';
// Change color if negative
if (netProfit < 0) {
document.getElementById('res_net_profit').style.color = "#d32f2f";
} else {
document.getElementById('res_net_profit').style.color = "#2e7d32";
}
}