How to Use the Amazon FBA Profit Calculator
Calculating your potential earnings on Amazon is critical for any e-commerce business. This Fulfillment by Amazon (FBA) calculator helps you determine your net profit, margins, and return on investment (ROI) after accounting for Amazon's multi-layered fee structure.
Understanding the Core Inputs
- Unit Cost (COGS): The total price you pay your manufacturer to produce one unit.
- Amazon Referral Fee: Typically 15% for most categories, this is the "commission" Amazon takes for every sale made on their platform.
- FBA Fulfillment Fee: This covers the picking, packing, and shipping of your products to the customer. It varies based on weight and dimensions.
- Storage Fees: Amazon charges for the space your inventory occupies in their warehouses. This increases during Q4 (October–December).
Example Calculation
Imagine you sell a Yoga Mat for $35.00. Your manufacturing cost is $8.00, and shipping it to Amazon costs $1.50 per unit. Amazon takes a 15% referral fee ($5.25) and charges an FBA fee of $6.00. After factoring in $0.50 for monthly storage, your total cost per unit is $21.25. Your profit per unit is $13.75, resulting in a healthy 39% profit margin.
Why Profit Margin Matters
While high revenue looks great on paper, your net margin determines the sustainability of your Amazon business. Most successful FBA sellers aim for a profit margin of at least 20% to account for PPC (advertising) costs, returns, and unexpected promotions.
function calculateFBAProfit() {
var salePrice = parseFloat(document.getElementById('salePrice').value) || 0;
var unitCost = parseFloat(document.getElementById('unitCost').value) || 0;
var shippingCost = parseFloat(document.getElementById('shippingCost').value) || 0;
var referralFeePercent = parseFloat(document.getElementById('referralFee').value) || 0;
var fulfillmentFee = parseFloat(document.getElementById('fulfillmentFee').value) || 0;
var storageFee = parseFloat(document.getElementById('storageFee').value) || 0;
var unitsSold = parseFloat(document.getElementById('unitsSold').value) || 0;
// Calculations
var referralFeeAmount = salePrice * (referralFeePercent / 100);
var totalFeesPerUnit = referralFeeAmount + fulfillmentFee + storageFee;
var totalCostPerUnit = unitCost + shippingCost + totalFeesPerUnit;
var profitPerUnit = salePrice – totalCostPerUnit;
var monthlyRevenue = salePrice * unitsSold;
var monthlyProfit = profitPerUnit * unitsSold;
var profitMargin = (monthlyRevenue > 0) ? (monthlyProfit / monthlyRevenue) * 100 : 0;
var roi = (totalCostPerUnit > 0) ? (profitPerUnit / (unitCost + shippingCost)) * 100 : 0;
// Display Results
document.getElementById('results').style.display = 'block';
document.getElementById('resProfit').innerHTML = '$' + monthlyProfit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resMargin').innerHTML = profitMargin.toFixed(2) + '%';
document.getElementById('resROI').innerHTML = roi.toFixed(2) + '%';
var breakdownText = "Each unit costs you $" + totalCostPerUnit.toFixed(2) + " (including fees) and yields $" + profitPerUnit.toFixed(2) + " in net profit.";
document.getElementById('resBreakdown').innerHTML = breakdownText;
// Simple validation for loss
if (monthlyProfit < 0) {
document.getElementById('resProfit').style.color = '#d32f2f';
} else {
document.getElementById('resProfit').style.color = '#2e7d32';
}
}