Auto Loan Calculator Extra Payments

by

Amazon FBA Profit Calculator

Net Profit $0.00
Profit Margin 0.00%
ROI 0.00%
Total Amazon Fees $0.00

How to Calculate Amazon FBA Profitability

Success on Amazon hinges on understanding your unit economics. This Amazon FBA Profit Calculator helps sellers determine the true bottom line after accounting for all marketplace fees, procurement costs, and logistics expenses.

Key Components of FBA Costs

  • COGS (Cost of Goods Sold): The price you pay your manufacturer per unit. This should include any product inspections or packaging modifications.
  • Amazon Referral Fee: Essentially a commission for selling on their platform. For most categories, this is 15%, but it can range from 8% to 45% depending on the niche.
  • FBA Fulfillment Fees: This covers picking, packing, and shipping your product to the customer. It is based on the weight and dimensions of your product.
  • Monthly Storage Fees: Amazon charges for the space your inventory occupies in their fulfillment centers. These rates often increase significantly during Q4 (October–December).

Example Calculation

Scenario: You sell a kitchen gadget for $25.00.

  • Product Cost: $6.00
  • Shipping to Warehouse: $1.00
  • Referral Fee (15%): $3.75
  • Fulfillment Fee: $5.20
  • Storage Fee: $0.30

Total Expenses: $16.25 | Net Profit: $8.75 | Margin: 35% | ROI: 145.8%

What is a Good Profit Margin for FBA?

While every category is different, most professional sellers aim for the Rule of Three: 1/3 for product costs, 1/3 for Amazon fees, and 1/3 for profit. A net margin of 20% or higher is generally considered healthy for a private label business. If your ROI is below 100%, you may find it difficult to scale your inventory quickly because your capital is tied up in slow-returning stock.

function calculateFBAProfit() { var sellPrice = parseFloat(document.getElementById('sellPrice').value); var prodCost = parseFloat(document.getElementById('prodCost').value); var shippingToAmz = parseFloat(document.getElementById('shippingToAmz').value) || 0; var fbaFee = parseFloat(document.getElementById('fbaFee').value) || 0; var referralRate = parseFloat(document.getElementById('referralRate').value) || 0; var storageFee = parseFloat(document.getElementById('storageFee').value) || 0; if (isNaN(sellPrice) || isNaN(prodCost)) { alert("Please enter both the Selling Price and Product Cost."); return; } var referralFeeAmount = sellPrice * (referralRate / 100); var totalAmazonFees = referralFeeAmount + fbaFee + storageFee; var totalExpenses = prodCost + shippingToAmz + totalAmazonFees; var netProfit = sellPrice – totalExpenses; var margin = (netProfit / sellPrice) * 100; var roi = (netProfit / (prodCost + shippingToAmz)) * 100; document.getElementById('resProfit').innerText = "$" + netProfit.toFixed(2); document.getElementById('resMargin').innerText = margin.toFixed(2) + "%"; document.getElementById('resROI').innerText = roi.toFixed(2) + "%"; document.getElementById('resTotalFees').innerText = "$" + totalAmazonFees.toFixed(2); document.getElementById('resultsArea').style.display = 'block'; // Color coding for profit var profitColor = netProfit > 0 ? "#2e7d32" : "#c62828"; document.getElementById('resProfit').style.color = profitColor; }

Leave a Comment