Mortgage Points Calculator

Amazon FBA Profit Calculator

Net Profit

$0.00

Profit Margin

0%

ROI (Return on Investment)

0%

Total Expenses

$0.00

function calculateFBAProfit() { var salePrice = parseFloat(document.getElementById('salePrice').value) || 0; var itemCost = parseFloat(document.getElementById('itemCost').value) || 0; var shipToAmz = parseFloat(document.getElementById('shipToAmz').value) || 0; var referralRate = parseFloat(document.getElementById('referralRate').value) || 0; var fbaFee = parseFloat(document.getElementById('fbaFee').value) || 0; var storageFee = parseFloat(document.getElementById('storageFee').value) || 0; var miscFee = parseFloat(document.getElementById('miscFee').value) || 0; if (salePrice 0 ? (netProfit / itemCost) * 100 : 0; document.getElementById('resProfit').innerHTML = '$' + netProfit.toFixed(2); document.getElementById('resMargin').innerHTML = margin.toFixed(2) + '%'; document.getElementById('resROI').innerHTML = roi.toFixed(2) + '%'; document.getElementById('resExpenses').innerHTML = '$' + totalExpenses.toFixed(2); document.getElementById('fbaResult').style.display = 'block'; if (netProfit < 0) { document.getElementById('resProfit').style.color = '#d9534f'; } else { document.getElementById('resProfit').style.color = '#2e7d32'; } }

Understanding Your Amazon FBA Profit Margins

Selling on Amazon FBA (Fulfillment by Amazon) is a lucrative business model, but the fee structure can be complex. To remain profitable, you must account for every cent that leaves your account. This Amazon FBA Profit Calculator helps you visualize your "bottom line" after all hidden costs.

Key Components of the FBA Calculation

  • Referral Fee: This is Amazon's "commission" for selling on their platform. For most categories, this is 15%, but it can range from 8% to 45% depending on the niche.
  • Fulfillment Fee: This covers the picking, packing, and shipping of your orders to the customer. This is determined by the size and weight of your product.
  • Monthly Storage Fee: Amazon charges you to keep your inventory in their warehouses. Note that these fees increase significantly during the Q4 holiday season (October–December).
  • COGS (Cost of Goods Sold): The raw cost of manufacturing or purchasing your product from a supplier.

ROI vs. Profit Margin: What's the Difference?

While often used interchangeably, they tell different stories about your business health:

Profit Margin is the percentage of your sale price that you keep as profit. For example, a 30% margin means you keep $30 for every $100 in revenue. This is crucial for understanding how much "room" you have for price wars or advertising costs.

ROI (Return on Investment) measures the efficiency of your capital. If you spend $10 on a product and make $10 in profit, your ROI is 100%. This is vital for Amazon sellers to know how quickly they can grow their cash flow.

FBA Profit Example

Imagine you are selling a yoga mat for $45.00.

  1. COGS: $12.00
  2. Shipping to Amazon: $2.00
  3. Referral Fee (15%): $6.75
  4. Fulfillment Fee: $7.50
  5. Monthly Storage: $0.50
  6. Total Expenses: $28.75
  7. Net Profit: $16.25
  8. Profit Margin: 36.1%
  9. ROI: 135.4%

In this scenario, for every dollar you spend on inventory, you get back your dollar plus an additional $1.35 in profit. This is a very healthy FBA business model.

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