Calculate Net Profit, Margin, and ROI for your Amazon Business
Product Financials
Amazon Fees & Marketing
Results Summary
Net Profit:$10.94
Profit Margin:36.48%
Return on Investment:128.71%
Total Fees:$10.55 Total Costs:$19.05
Understanding Amazon FBA Profitability
Running a successful Amazon business requires a deep understanding of your margins. Many sellers only look at the "top-line" revenue, but the "bottom-line" profit is what actually determines the sustainability of your FBA business.
Key Components of the Calculation
Cost of Goods Sold (COGS): The total cost to manufacture or purchase one unit.
Amazon Referral Fee: Typically 15% of the sale price for most categories.
FBA Fulfillment Fee: The cost for Amazon to pick, pack, and ship your product. This varies by weight and dimension.
PPC Spend: Your total advertising cost divided by the number of units sold (Average Cost of Sale).
Example Profit Scenario
Suppose you sell a kitchen gadget for $29.99. Your purchase price from the factory is $8.50 and it costs $1.20 to ship it to Amazon's warehouse. Amazon charges a 15% referral fee ($4.50) and an FBA fulfillment fee of $5.40. If you spend roughly $3.50 in advertising (PPC) per unit sold, your calculation would look like this:
Item
Value
Sale Price
$29.99
Total Expenses (COGS + Fees + PPC)
-$23.55
Net Profit per Unit
$6.44
Tips to Increase Your FBA Margin
1. Optimize Packaging: Lowering the dimensions or weight of your product can significantly reduce FBA fulfillment fees.
2. Negotiate COGS: As your volume increases, renegotiate with your supplier to lower the unit cost.
3. Master PPC: Improving your advertising efficiency (Lowering ACoS) directly adds to your net profit per unit.
function calculateFBAProfit() {
var price = parseFloat(document.getElementById('salePrice').value);
var cogs = parseFloat(document.getElementById('productCost').value);
var shipFba = parseFloat(document.getElementById('shippingToFba').value);
var refPercent = parseFloat(document.getElementById('referralFeePercent').value);
var fbaFee = parseFloat(document.getElementById('fbaFee').value);
var storage = parseFloat(document.getElementById('storageFee').value);
var ppc = parseFloat(document.getElementById('ppcSpend').value);
if (isNaN(price) || isNaN(cogs) || isNaN(shipFba) || isNaN(refPercent) || isNaN(fbaFee) || isNaN(storage) || isNaN(ppc)) {
alert("Please enter valid numbers in all fields.");
return;
}
// Calculations
var referralAmount = price * (refPercent / 100);
var totalAmazonFees = referralAmount + fbaFee + storage;
var totalExpenses = cogs + shipFba + totalAmazonFees + ppc;
var netProfit = price – totalExpenses;
var profitMargin = (price > 0) ? (netProfit / price) * 100 : 0;
var roi = (cogs > 0) ? (netProfit / (cogs + shipFba)) * 100 : 0;
// Display Results
document.getElementById('resProfit').innerHTML = '$' + netProfit.toFixed(2);
document.getElementById('resMargin').innerHTML = profitMargin.toFixed(2) + '%';
document.getElementById('resROI').innerHTML = roi.toFixed(2) + '%';
document.getElementById('resTotalFees').innerHTML = '$' + (totalAmazonFees + shipFba).toFixed(2);
document.getElementById('resTotalCosts').innerHTML = '$' + totalExpenses.toFixed(2);
// Conditional styling for profit
if (netProfit < 0) {
document.getElementById('resProfit').style.color = '#d0021b';
document.getElementById('resMargin').style.color = '#d0021b';
document.getElementById('resROI').style.color = '#d0021b';
} else {
document.getElementById('resProfit').style.color = '#b12704';
document.getElementById('resMargin').style.color = '#007600';
document.getElementById('resROI').style.color = '#007600';
}
}