Amazon FBA Profit Calculator
Calculate net margins, fees, and ROI for your Amazon products.
Total Net Profit
$0.00
Profit Margin
0.00%
Total Amazon Fees
$0.00
Return on Investment (ROI)
0.00%
How to Calculate Amazon FBA Profitability
Selling on Amazon through the Fulfillment by Amazon (FBA) program involves various fees that can significantly impact your bottom line. To understand your true net profit, you must account for every cost associated with getting the product from the manufacturer to the customer's doorstep.
Understanding the Key Metrics
- Referral Fee: Amazon's "commission" for selling on their platform. This is usually 15% for most categories.
- Fulfillment Fee: A flat fee per unit based on the weight and dimensions of your product. This covers picking, packing, and shipping.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit of your product.
- ROI (Return on Investment): Calculated as (Net Profit / Cost of Goods) * 100. This tells you how efficiently your capital is working.
FBA Calculation Example
Imagine you sell a yoga mat for $40.00. Your costs are as follows:
- • Product Cost: $10.00
- • Amazon Referral Fee (15%): $6.00
- • FBA Fulfillment Fee: $7.50
- • Shipping to Warehouse: $1.50
- • Total Expenses: $25.00
- • Net Profit: $15.00 (37.5% Margin)
Why Margin Matters
In the world of Amazon FBA, a "healthy" margin is typically considered 25% or higher. This provides a buffer for PPC (Pay-Per-Click) advertising costs, returns, and price fluctuations from competitors. If your margin falls below 15%, you may struggle to remain profitable after marketing expenses.