Calculate your net profit, margins, and ROI for Amazon FBA products after all fees and expenses.
Total Amazon Fees:$0.00
Total Expenses:$0.00
Net Profit:$0.00
Profit Margin:0.00%
Return on Investment (ROI):0.00%
Understanding Amazon FBA Profitability
Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but the fee structure can be complex. To remain profitable, you must account for every penny that leaves your pocket from the factory to the customer's doorstep.
Key Metrics Explained
Referral Fee: This is Amazon's commission for selling on their platform. For most categories, this is 15% of the total sales price.
Fulfillment Fee: This covers picking, packing, and shipping your product to the customer. It is based on the weight and dimensions of your product.
COGS (Cost of Goods Sold): The price you pay your manufacturer to produce the item.
ROI (Return on Investment): This shows how much money you make relative to what you spent on inventory. A 100% ROI means you doubled your money.
Realistic Example Calculation
Product: Yoga Mat
Sale Price: $40.00
COGS: $10.00
Amazon Referral Fee (15%): $6.00
FBA Fulfillment Fee: $7.50
Shipping to Warehouse: $1.50
Net Profit: $15.00
Profit Margin: 37.5%
ROI: 150%
How to Improve Your FBA Margins
If your margins are slim, consider these strategies:
Optimize Packaging: Dropping just a few ounces or an inch in dimensions can shift your product into a lower FBA fee tier.
Bulk Shipping: Reduce "Shipping to Amazon" costs by using sea freight or larger LTL (Less Than Truckload) shipments.
Increase Price: Even a $1 or $2 increase in price goes straight to your bottom line, as most fees remain fixed.
function calculateFBAProfit() {
// Get Input Values
var salePrice = parseFloat(document.getElementById('fba_sale_price').value) || 0;
var cogs = parseFloat(document.getElementById('fba_cogs').value) || 0;
var shippingToAmazon = parseFloat(document.getElementById('fba_shipping_to_amazon').value) || 0;
var referralPercent = parseFloat(document.getElementById('fba_referral_fee').value) || 0;
var fulfillmentFee = parseFloat(document.getElementById('fba_fulfillment_fee').value) || 0;
var storageFee = parseFloat(document.getElementById('fba_storage_fee').value) || 0;
var ppcSpend = parseFloat(document.getElementById('fba_ppc_spend').value) || 0;
var otherCosts = parseFloat(document.getElementById('fba_other_costs').value) || 0;
// Calculation Logic
var referralFeeAmount = salePrice * (referralPercent / 100);
var totalAmazonFees = referralFeeAmount + fulfillmentFee + storageFee;
var totalNonAmazonCosts = cogs + shippingToAmazon + ppcSpend + otherCosts;
var totalExpenses = totalAmazonFees + totalNonAmazonCosts;
var netProfit = salePrice – totalExpenses;
var profitMargin = 0;
if (salePrice > 0) {
profitMargin = (netProfit / salePrice) * 100;
}
var roi = 0;
if (cogs > 0) {
roi = (netProfit / (cogs + shippingToAmazon)) * 100;
}
// Display Results
document.getElementById('fba_results_area').style.display = 'block';
document.getElementById('res_total_fees').innerHTML = '$' + totalAmazonFees.toFixed(2);
document.getElementById('res_total_expenses').innerHTML = '$' + totalExpenses.toFixed(2);
var profitElement = document.getElementById('res_net_profit');
profitElement.innerHTML = '$' + netProfit.toFixed(2);
if (netProfit < 0) {
profitElement.className = 'profit-negative';
} else {
profitElement.className = 'profit-positive';
}
document.getElementById('res_margin').innerHTML = profitMargin.toFixed(2) + '%';
document.getElementById('res_roi').innerHTML = roi.toFixed(2) + '%';
// Smooth scroll to results on mobile
if (window.innerWidth < 600) {
document.getElementById('fba_results_area').scrollIntoView({ behavior: 'smooth' });
}
}