Amazon FBA Profit Calculator
Calculate your net profit, ROI, and margins instantly.
Understanding Amazon FBA Profitability
Success on Amazon hinges on more than just high sales volume; it requires a deep understanding of your net margins after all fees are accounted for. Using an Amazon FBA Profit Calculator is the first step in ensuring your private label or wholesale business is sustainable.
How to Calculate Your FBA Profit
The formula for calculating Amazon profit involves subtracting all direct and indirect costs from your final sale price. Here is the breakdown of the metrics used in our calculator:
1. Cost of Goods Sold (COGS)
This is the manufacturing cost per unit. It includes the price you pay your supplier plus any packaging or inspection costs incurred before the product leaves the factory.
2. Referral Fees
Amazon charges a commission for every item sold on their platform. For most categories, this is 15% of the total sales price. Some categories like electronics may have a lower fee (8%), while others might be higher.
3. FBA Fulfillment Fees
These are the "Pick and Pack" fees. This covers the cost of Amazon employees locating your item, packing it, and shipping it to the customer. This fee varies based on the weight and dimensions of your product.
4. Ad Spend (PPC)
Most sellers overlook the cost of Amazon Advertising. If you spend $200 on ads to sell 100 units, your PPC cost per unit is $2.00. This must be subtracted to find your true "Net Profit."
Example Calculation
Imagine you sell a Yoga Mat for $40.00.
- COGS: $10.00
- Shipping to Amazon: $1.50
- Referral Fee (15%): $6.00
- FBA Fee: $7.50
- PPC Spend: $3.00
Total Expenses: $28.00
Net Profit: $12.00
Profit Margin: 30%
ROI: 120%
Why ROI and Margin Matter
While profit tells you how much money you keep, Margin tells you how efficient your business is, and ROI tells you how fast your capital is growing. A healthy FBA business typically aims for at least a 25% margin and a 100% ROI to allow for price fluctuations and unexpected storage costs.