Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA products.
How to Calculate Amazon FBA Profitability
Success on Amazon depends on understanding your "true" net margin. Many sellers focus on revenue, but the "Fulfillment by Amazon" (FBA) model includes several layers of fees that can quickly erode your profits if not accounted for correctly.
Core Components of the Calculation
- Selling Price: The final price the customer pays for your product.
- COGS (Cost of Goods Sold): The price you pay the manufacturer per unit, including any packaging.
- Amazon Referral Fee: Typically 15% for most categories, this is Amazon's commission for the sale.
- FBA Fulfillment Fee: The cost for Amazon to pick, pack, and ship your item to the customer. This depends on the size and weight of your product.
- Inbound Shipping: What it costs you to send your inventory from your warehouse or manufacturer to an Amazon Fulfillment Center.
Example Calculation
Let's say you sell a yoga mat for $40.00. Your costs are:
- Product Cost: $10.00
- Inbound Shipping: $1.00
- Amazon Referral Fee (15%): $6.00
- FBA Fulfillment Fee: $7.50
- Marketing/PPC: $3.00
Total Expenses: $10 + $1 + $6 + $7.50 + $3 = $27.50
Net Profit: $40.00 – $27.50 = $12.50
Net Margin: 31.25% ($12.50 / $40.00)
Why Monitoring ROI is Critical
While margin tells you how much of each sale is profit, ROI (Return on Investment) tells you how hard your money is working. If you spend $10 to make $5 profit, your ROI is 50%. Aiming for a healthy balance between a 25%+ margin and 100%+ ROI is a common goal for sustainable Amazon FBA businesses.