Amazon FBA Profit Calculator
Calculate your net profit, ROI, and margins for Fulfillment by Amazon (FBA) sales accurately.
How to Use the Amazon FBA Profit Calculator
Success on Amazon depends on understanding your "true" profit after all fees are deducted. This calculator helps you breakdown the costs of the Fulfillment by Amazon (FBA) program to ensure your business remains sustainable and profitable.
Key Input Definitions
- Selling Price: The final amount the customer pays for your product on Amazon.com.
- Product Cost (COGS): What you paid your manufacturer per unit, including any packaging costs.
- Shipping to Amazon: The freight cost to move one unit from your warehouse or supplier to Amazon's fulfillment centers.
- Referral Fee: The commission Amazon takes for selling on their platform (usually 15% for most categories).
- Fulfillment Fee: The flat fee per unit Amazon charges to pick, pack, and ship your item to the customer.
- Monthly Storage Fee: The cost to store one unit in Amazon's warehouse for one month.
The Formula for FBA Profit
We use the following logic to determine your bottom line:
- Referral Fee Amount = Selling Price × (Referral Fee % / 100)
- Total Expenses = Product Cost + Shipping to Amazon + Referral Fee + Fulfillment Fee + Storage Fee
- Net Profit = Selling Price – Total Expenses
- Net Margin = (Net Profit / Selling Price) × 100
- ROI = (Net Profit / Product Cost) × 100
Example Calculation
Imagine you are selling a Yoga Mat:
- Selling Price: $40.00
- Product Cost: $10.00
- Shipping: $2.00
- Referral Fee (15%): $6.00
- Fulfillment Fee: $7.50
- Storage Fee: $0.50
In this scenario, your Total Costs equal $26.00 ($10+$2+$6+$7.5+$0.5). Your Net Profit is $14.00, resulting in a 35% Margin and a 140% ROI.
Why Profit Margin Matters More Than Revenue
Many new Amazon sellers focus on "Top Line Revenue." However, a high-revenue business can still lose money if FBA fees and PPC (Advertising) costs are too high. A healthy FBA business typically aims for a Net Margin of at least 20-25% to account for advertising spend and overhead.