Amazon FBA Profit Calculator
Estimate your net margins and ROI after all Amazon fees
Total Amazon Fees:
Total Landed Cost:
Net Profit (Per Unit):
Net Margin:
Return on Investment (ROI):
How to Use the Amazon FBA Profit Calculator
Success on Amazon hinges on understanding your "true" profit after all hidden costs are deducted. While Fulfillment by Amazon (FBA) offers massive scale, the fees can be complex. This calculator helps you break down every expense to see if your product idea is viable.
Understanding Key FBA Metrics
- Cost of Goods (COGS): This is the manufacturing cost per unit from your supplier.
- Referral Fee: Amazon's "commission" for selling on their platform. For most categories, this is 15% of the total sales price.
- Fulfillment Fee: The cost for Amazon to pick, pack, and ship your item. This depends on the size and weight of your product.
- Landed Cost: The sum of your product cost and the shipping cost to get it into Amazon's warehouses.
Example Profit Calculation
Imagine you are selling a yoga mat for $40.00. Your costs are as follows:
- Product Cost: $10.00
- Shipping to Amazon: $2.00
- Referral Fee (15%): $6.00
- FBA Fulfillment Fee: $7.50
- PPC Advertising: $4.00
In this scenario, your total costs are $29.50. Your Net Profit would be $10.50 per unit, resulting in a 26.25% Net Margin and an 87.5% ROI.
What is a "Good" FBA Margin?
Most experienced sellers aim for a "Rule of Three." This means 1/3 goes to COGS, 1/3 goes to Amazon Fees, and 1/3 goes to you as profit. Ideally, you should look for a net margin of at least 20% to account for fluctuations in PPC costs and potential returns.