Estimate your net profit, margins, and ROI after Amazon fees.
Amazon Referral Fee:—
Est. Fulfillment Fee:—
Total Amazon Fees:—
Net Profit per Unit:—
Net Margin:—
ROI (Return on Investment):—
How to Calculate Amazon FBA Profits
Selling on Amazon through the Fulfillment by Amazon (FBA) program is a great way to scale a business, but the fee structure can be complex. To accurately determine if a product is viable, you must account for several key factors beyond just the cost of the item.
Key Metrics Explained
Referral Fee: This is essentially Amazon's commission for selling on their platform. For most categories, this is 15% of the total selling price.
Fulfillment Fee: This covers the cost of picking, packing, and shipping your orders. It is calculated based on the weight and dimensions of your product.
COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit of your product.
Net Margin: The percentage of your selling price that remains as profit after all expenses are paid.
Example Calculation
Suppose you are selling a yoga mat for $40.00. Your costs are as follows:
To improve your FBA profitability, focus on reducing product packaging dimensions to fall into a lower size tier, or negotiate better bulk pricing with your manufacturer. Monitoring your PPC (Pay-Per-Click) advertising spend is also crucial, as high ad costs can quickly erode your net profit.
function calculateFBAProfit() {
var salePrice = parseFloat(document.getElementById('salePrice').value);
var productCost = parseFloat(document.getElementById('productCost').value);
var shippingToAmazon = parseFloat(document.getElementById('shippingToAmazon').value) || 0;
var weight = parseFloat(document.getElementById('unitWeight').value) || 0;
var miscCosts = parseFloat(document.getElementById('miscCosts').value) || 0;
var referralPercent = parseFloat(document.getElementById('categoryFee').value) || 15;
if (isNaN(salePrice) || isNaN(productCost)) {
alert("Please enter both the Selling Price and Product Cost.");
return;
}
// 1. Calculate Referral Fee
var referralFee = salePrice * (referralPercent / 100);
// 2. Calculate Estimated Fulfillment Fee (Simplified Amazon 2024 tier logic)
// Base fee for standard size items: ~$3.22 for <0.5lb, ~$3.80 for 0.5-1lb, ~$5.40+ for 1-2lb
var fulfillmentFee = 0;
if (weight <= 0.5) {
fulfillmentFee = 3.22;
} else if (weight <= 1) {
fulfillmentFee = 3.80;
} else if (weight <= 2) {
fulfillmentFee = 5.40;
} else if (weight = 0) {
profitEl.className = "result-value profit-positive";
} else {
profitEl.className = "result-value profit-negative";
}
document.getElementById('resMargin').innerText = margin.toFixed(2) + "%";
document.getElementById('resROI').innerText = roi.toFixed(2) + "%";
document.getElementById('fbaResults').style.display = 'block';
}