Calculator Use
Use this fba cost calculator to accurately project your net profit and margins when selling on the Amazon marketplace. Success on Amazon is determined by understanding every cent of your overhead. By entering your price point and sourcing costs, this tool allows you to see the exact impact of Amazon\'s fee structure on your bottom line.
Whether you are a seasoned seller or just starting with private label, knowing your numbers is the difference between a thriving business and a financial loss.
- Selling Price
- The total amount you plan to charge the customer on Amazon.com.
- Product Cost (COGS)
- The per-unit price you pay your manufacturer or wholesaler.
- Inbound Shipping
- The cost to ship a single unit from your supplier or warehouse to the Amazon fulfillment center.
- Referral Fee
- The percentage of the sale price Amazon takes as a commission (usually 15% for most categories).
How It Works
When you utilize Fulfillment by Amazon (FBA), you are paying for logistics, customer service, and storage. The fba cost calculator aggregates these variables to provide a clear picture of your "Net Take Home." The logic follows a specific sequence of subtractions:
Profit = Selling Price – (Sourcing Cost + Shipping + Referral Fee + Fulfillment Fee + Storage)
- Referral Fee: This is a category-specific percentage. For example, Electronics may be 8%, while Apparel is typically 15%.
- Fulfillment Fee: This is a flat fee based on the weight and dimensions of your packaged product. It covers the labor of picking, packing, and shipping the item to the buyer.
- Monthly Storage: Amazon charges for the space your inventory occupies. This fee increases significantly during the Q4 holiday season (October–December).
Calculation Example
Example: A seller wants to sell a kitchen gadget for $29.99. The item costs $6.00 to manufacture and $1.00 to ship to Amazon. The category referral fee is 15%. The FBA fulfillment fee is $5.40, and the monthly storage is $0.15.
Step-by-step solution:
- Calculate Referral Fee: $29.99 * 0.15 = $4.50
- Sum Total Fees: $4.50 (Referral) + $5.40 (FBA) + $0.15 (Storage) = $10.05
- Sum Total Costs: $6.00 (COGS) + $1.00 (Ship) + $10.05 (Fees) = $17.05
- Calculate Profit: $29.99 – $17.05 = $12.94
- Final Margin: ($12.94 / $29.99) = 43.15%
Common Questions
What is a good profit margin for FBA?
Most successful Amazon sellers aim for a "Rule of Three": 1/3 for product costs, 1/3 for Amazon fees, and 1/3 for profit. A net margin of 20% to 30% is generally considered healthy for a sustainable brand.
Does this calculator include PPC advertising costs?
This fba cost calculator focuses on fixed logistics and marketplace fees. Marketing costs like Amazon PPC are variable and should be subtracted from your final "Net Profit" to find your "Net-Net" profit.
Why are storage fees different in different months?
Amazon raises storage rates during the peak holiday season (October through December) to encourage sellers to move inventory quickly and prevent warehouse congestion. Always adjust your fba cost calculator inputs when planning for Q4 sales.