Calculate your net margins, ROI, and Amazon fees instantly.
Amazon Referral Fee:-$0.00
Total Expenses:$0.00
Net Profit:$0.00
Profit Margin:0%
Return on Investment (ROI):0%
How to Calculate Amazon FBA Profit
Selling on Amazon is more than just price minus cost. To find your true take-home pay, you must account for the Amazon ecosystem of fees. The formula for Amazon profit is:
Net Profit = Sale Price – (COGS + Shipping to Amazon + Referral Fee + FBA Fulfillment Fee + PPC Spend)
Understanding Key Amazon Fees
Referral Fee: This is Amazon's "commission" for selling on their platform. For most categories, this is 15% of the total sales price.
FBA Fulfillment Fee: This covers the picking, packing, and shipping of your orders. It is based on the weight and dimensions of your product.
COGS (Cost of Goods Sold): This includes the manufacturing cost per unit plus any inspection or sourcing agent fees.
PPC Spend: For many sellers, advertising (Pay-Per-Click) accounts for 10-30% of their revenue. It is vital to include this in your per-unit math.
Example Calculation
Imagine you sell a Yoga Mat for $40.00. Your manufacturing cost (COGS) is $10.00 and it costs $2.00 to ship to Amazon's warehouse. Amazon charges a 15% referral fee ($6.00) and an FBA fulfillment fee of $7.00. You spend $5.00 per unit on advertising.
Total Expenses = $10 + $2 + $6 + $7 + $5 = $30.00. Net Profit = $10.00 per unit. Profit Margin = 25%.