Calculate your net profit, margins, and ROI for Amazon FBA sales.
Total Amazon Fees:$0.00
Total Expenses:$0.00
Net Profit:$0.00
Profit Margin:0%
Return on Investment (ROI):0%
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 succeed, you must look beyond the "selling price" and understand your net margins.
Key Components Explained:
Referral Fee: This is Amazon's commission for selling on their platform. It usually ranges from 8% to 15% depending on the category.
Fulfillment Fee: This covers picking, packing, and shipping your product to the customer, as well as customer service.
COGS (Cost of Goods Sold): The raw cost to manufacture or purchase your product from a supplier.
Storage Fees: Amazon charges monthly fees to store your inventory in their warehouses. This fluctuates based on the size of the item and the time of year (Q4 is more expensive).
A Realistic Example
Let's say you sell a yoga mat for $35.00. Your manufacturing cost is $10.00 and it costs $2.00 to ship it to an Amazon warehouse. Amazon takes a 15% referral fee ($5.25) and charges a fulfillment fee of $6.00. If you spend $4.00 per unit on PPC advertising:
To increase your profit margins, consider reducing your packaging size to drop into a lower fulfillment weight tier, negotiating better rates with suppliers, or improving your PPC conversion rate to lower your marketing cost per unit. Use this Amazon FBA Profit Calculator regularly to adjust your pricing strategy as shipping costs and Amazon's fee structures change.
function calculateFBAProfit() {
// Inputs
var price = parseFloat(document.getElementById('fba_price').value) || 0;
var cost = parseFloat(document.getElementById('fba_cost').value) || 0;
var shippingIn = parseFloat(document.getElementById('fba_shipping_in').value) || 0;
var referralPercent = parseFloat(document.getElementById('fba_referral').value) || 0;
var fulfillment = parseFloat(document.getElementById('fba_fulfillment').value) || 0;
var storage = parseFloat(document.getElementById('fba_storage').value) || 0;
var ads = parseFloat(document.getElementById('fba_ads').value) || 0;
var misc = parseFloat(document.getElementById('fba_misc').value) || 0;
// Calculations
var referralFee = price * (referralPercent / 100);
var totalAmazonFees = referralFee + fulfillment + storage;
var totalExpenses = cost + shippingIn + totalAmazonFees + ads + misc;
var netProfit = price – totalExpenses;
var profitMargin = 0;
if (price > 0) {
profitMargin = (netProfit / price) * 100;
}
var roi = 0;
var totalInvestment = cost + shippingIn;
if (totalInvestment > 0) {
roi = (netProfit / totalInvestment) * 100;
}
// Display Results
document.getElementById('fba-results').style.display = 'block';
document.getElementById('res_fees').innerHTML = '$' + totalAmazonFees.toFixed(2);
document.getElementById('res_total_exp').innerHTML = '$' + totalExpenses.toFixed(2);
var profitEl = document.getElementById('res_profit');
profitEl.innerHTML = '$' + netProfit.toFixed(2);
if (netProfit >= 0) {
profitEl.className = 'result-value profit-positive';
} else {
profitEl.className = 'result-value profit-negative';
}
document.getElementById('res_margin').innerHTML = profitMargin.toFixed(2) + '%';
document.getElementById('res_roi').innerHTML = roi.toFixed(2) + '%';
// Scroll slightly to see results if on mobile
if(window.innerWidth < 600) {
document.getElementById('fba-results').scrollIntoView({ behavior: 'smooth' });
}
}