Understanding your numbers is the most critical part of running a successful Amazon FBA (Fulfillment by Amazon) business. Many sellers focus on revenue, but net profit is what actually goes into your bank account. Use this calculator to determine if your product idea is viable or to audit your current listings.
Key Components of FBA Profit
Selling Price: The final price the customer pays for your item.
Cost of Goods Sold (COGS): The manufacturing cost per unit, including packaging.
Amazon Referral Fee: Typically 15% for most categories, this is Amazon's commission for the sale.
Fulfillment Fee: The cost for Amazon to pick, pack, and ship your product. This is based on size and weight.
ROI (Return on Investment): Measures how much profit you make relative to your product and shipping investment.
Example Calculation
Imagine you are selling a yoga mat for $30.00. Your manufacturing cost is $7.00 and shipping to the warehouse is $2.00. Amazon takes a 15% referral fee ($4.50) and charges an FBA fee of $6.00. You also spend $3.00 per unit on PPC advertising.
If your margins are below 20%, consider negotiating with your supplier for better volume pricing, optimizing your packaging to reduce the FBA size tier, or increasing your selling price by adding unique value to the product bundle.
function calculateFBAProfit() {
var price = parseFloat(document.getElementById('sellingPrice').value) || 0;
var cogs = parseFloat(document.getElementById('productCost').value) || 0;
var shipToAmz = parseFloat(document.getElementById('shippingToAmazon').value) || 0;
var refPercent = parseFloat(document.getElementById('referralFeePercent').value) || 0;
var fbaFee = parseFloat(document.getElementById('fbaFulfillmentFee').value) || 0;
var other = parseFloat(document.getElementById('otherCosts').value) || 0;
// Calculation Logic
var referralFeeAmount = price * (refPercent / 100);
var totalExpenses = cogs + shipToAmz + referralFeeAmount + fbaFee + other;
var netProfit = price – totalExpenses;
var profitMargin = 0;
if (price > 0) {
profitMargin = (netProfit / price) * 100;
}
var roi = 0;
var investment = cogs + shipToAmz;
if (investment > 0) {
roi = (netProfit / investment) * 100;
}
// Update Results
document.getElementById('resTotalExpenses').innerText = '$' + totalExpenses.toFixed(2);
document.getElementById('resNetProfit').innerText = '$' + netProfit.toFixed(2);
document.getElementById('resMargin').innerText = profitMargin.toFixed(2) + '%';
document.getElementById('resROI').innerText = roi.toFixed(2) + '%';
// Show Results
document.getElementById('results').style.display = 'block';
// Style Net Profit Color based on result
if (netProfit < 0) {
document.getElementById('resNetProfit').style.color = '#d9534f';
} else {
document.getElementById('resNetProfit').style.color = '#5cb85c';
}
}