Amazon FBA Profit Calculator
Calculate your net margins, referral fees, and ROI instantly.
Sales Data
Amazon Fees
How to Use the Amazon FBA Profit Calculator
To scale a successful Amazon business, understanding your Amazon FBA fees and net margins is critical. This calculator helps sellers break down every cost associated with a single unit sale, from manufacturing (COGS) to Amazon’s fulfillment network costs.
Understanding the Core Metrics
- Referral Fees: This is Amazon’s commission for selling on their platform. For most categories, this is 15% of the selling price.
- Fulfillment Fees: This covers the picking, packing, and shipping of your product to the customer. It is based on the weight and dimensions of your item.
- Net Profit: What stays in your pocket after paying for the product, shipping, and Amazon’s cut.
- ROI (Return on Investment): This shows how hard your capital is working. An ROI of 100% means for every $1 you spend on stock and shipping, you get $1 back in profit.
Example Calculation
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. If the referral fee is 15% ($5.25) and the FBA fulfillment fee is $6.00, your calculation would look like this:
$35.00 (Price) – $10.00 (COGS) – $2.00 (Inbound Ship) – $5.25 (Referral) – $6.00 (FBA Fee) = $11.75 Profit.
Margin: 33.5% | ROI: 97.9%
Strategies to Increase FBA Margins
If your margins are below 20%, consider the following optimizations:
- Product Sourcing: Negotiate lower unit costs with suppliers or optimize packaging to reduce weight/dimensions.
- Fulfillment Tier: Check if your product is slightly over a weight threshold. Reducing weight by even 1 ounce can save you dollars in FBA fees.
- Price Testing: A small $1.00 increase in selling price often flows directly to net profit, significantly boosting ROI.
function calculateFBAProfit() {
// Get values from inputs
var sellingPrice = parseFloat(document.getElementById(‘fba_sellingPrice’).value) || 0;
var itemCost = parseFloat(document.getElementById(‘fba_itemCost’).value) || 0;
var shipToAmazon = parseFloat(document.getElementById(‘fba_shippingToAmazon’).value) || 0;
var referralRate = parseFloat(document.getElementById(‘fba_referralRate’).value) || 0;
var fulfillmentFee = parseFloat(document.getElementById(‘fba_fulfillmentFee’).value) || 0;
var otherCosts = parseFloat(document.getElementById(‘fba_otherCosts’).value) || 0;
// Calculations
var referralFeeAmount = (sellingPrice * (referralRate / 100));
var totalAmazonFees = referralFeeAmount + fulfillmentFee;
var totalExpenses = itemCost + shipToAmazon + totalAmazonFees + otherCosts;
var netProfit = sellingPrice – totalExpenses;
var profitMargin = (sellingPrice > 0) ? (netProfit / sellingPrice) * 100 : 0;
// ROI calculation based on capital outlay (product + shipping)
var capitalInvested = itemCost + shipToAmazon;
var roi = (capitalInvested > 0) ? (netProfit / capitalInvested) * 100 : 0;
// Display results
document.getElementById(‘fba_results’).style.display = ‘block’;
document.getElementById(‘res_netProfit’).innerText = ‘$’ + netProfit.toFixed(2);
document.getElementById(‘res_margin’).innerText = profitMargin.toFixed(1) + ‘%’;
document.getElementById(‘res_roi’).innerText = roi.toFixed(1) + ‘%’;
document.getElementById(‘res_totalFees’).innerText = ‘$’ + totalAmazonFees.toFixed(2);
// Color formatting for profit
if(netProfit < 0) {
document.getElementById('res_netProfit').style.color = '#c62828';
} else {
document.getElementById('res_netProfit').style.color = '#2e7d32';
}
}