Selling on Amazon through Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but understanding your true margins is critical for long-term success. This Amazon FBA Profit Calculator helps you break down the various costs involved in a single sale to determine if a product is worth sourcing.
Key Components of the Calculation:
Cost of Goods (COG): This is the manufacturing cost per unit, including any packaging provided by the supplier.
Amazon Referral Fee: This is essentially a commission Amazon takes for bringing you the customer. For most categories, this is 15% of the total selling price.
Fulfillment Fee (FBA Fee): This covers the picking, packing, and shipping of your item to the customer. It is determined by the size and weight of your product.
Storage Fees: Amazon charges for keeping your items in their warehouses. This fluctuates based on the season (higher in Q4) and the volume your inventory occupies.
How to Use the Results
A healthy Amazon business typically aims for a 30% Profit Margin and a 100% ROI (Return on Investment). If your ROI is below 50%, you may find it difficult to reinvest in new inventory while covering overhead costs like advertising (PPC) and software subscriptions.
Example: If you sell a spatula for $25.00, buy it for $5.00, and pay $10.00 in total Amazon fees, your net profit is $10.00. Your margin is 40%, and your ROI is 200%. This would be considered a very strong product.
function calculateFbaProfit() {
var sellingPrice = parseFloat(document.getElementById('sellingPrice').value) || 0;
var costOfGoods = parseFloat(document.getElementById('costOfGoods').value) || 0;
var shippingToFba = parseFloat(document.getElementById('shippingToFba').value) || 0;
var referralFeePercent = parseFloat(document.getElementById('referralFeePercent').value) || 0;
var fbaFee = parseFloat(document.getElementById('fbaFee').value) || 0;
var otherFees = parseFloat(document.getElementById('otherFees').value) || 0;
// Logic: Referral Fee is a percentage of selling price
var referralFeeAmount = sellingPrice * (referralFeePercent / 100);
// Total Amazon + Logistics Expenses
var totalExpenses = costOfGoods + shippingToFba + referralFeeAmount + fbaFee + otherFees;
var totalFeesOnly = referralFeeAmount + fbaFee + otherFees;
// Profit Calculation
var netProfit = sellingPrice – totalExpenses;
// Margin Calculation (Profit / Selling Price)
var margin = (sellingPrice > 0) ? (netProfit / sellingPrice) * 100 : 0;
// ROI Calculation (Profit / (COG + Shipping to FBA))
var totalInvestment = costOfGoods + shippingToFba;
var roi = (totalInvestment > 0) ? (netProfit / totalInvestment) * 100 : 0;
// Update UI
document.getElementById('fba-results').style.display = 'block';
document.getElementById('netProfit').innerHTML = '$' + netProfit.toFixed(2);
document.getElementById('profitMargin').innerHTML = margin.toFixed(2) + '%';
document.getElementById('roi').innerHTML = roi.toFixed(2) + '%';
document.getElementById('totalFees').innerHTML = '$' + totalFeesOnly.toFixed(2);
// Color coding for profit/loss
if (netProfit < 0) {
document.getElementById('netProfit').style.color = '#d32f2f';
document.getElementById('profitMargin').style.color = '#d32f2f';
document.getElementById('roi').style.color = '#d32f2f';
} else {
document.getElementById('netProfit').style.color = '#2e7d32';
document.getElementById('profitMargin').style.color = '#2e7d32';
document.getElementById('roi').style.color = '#2e7d32';
}
}