Amazon FBA Profit Calculator
Estimate your net profit, margins, and ROI for Amazon FBA products.
Total Amazon Fees:
$0.00
Total Expenses:
$0.00
Net Profit:
$0.00
Profit Margin:
0%
Return on Investment (ROI):
0%
How to Calculate Amazon FBA Profitability
Selling on Amazon via Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but understanding your true margins is critical. Many sellers focus solely on the "top line" revenue and forget the layered costs associated with the platform.
Understanding the Fees
To get an accurate profit calculation, you must account for several variables:
- Amazon Referral Fee: This is essentially a commission Amazon takes for every item sold. For most categories, this is 15% of the total selling price.
- FBA Fulfillment Fee: This covers the cost of picking, packing, and shipping your product to the customer. It is determined by the weight and dimensions of your product.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase the product from your supplier.
- Inbound Shipping: The cost to send your inventory from your warehouse or supplier to Amazon's fulfillment centers.
The Formula for FBA Success
The basic formula used by our calculator is:
Net Profit = Selling Price - COGS - Shipping - Referral Fee - FBA Fee - Misc Costs
What is a Good Profit Margin?
Most successful Amazon FBA sellers aim for a "Rule of Three." This means 1/3 goes to fees, 1/3 goes to product costs, and 1/3 is kept as profit. Generally, a net margin of 20% or higher is considered healthy in the competitive Amazon landscape.
Example Calculation
If you sell a product for $30.00, and your costs are:
- Product Cost: $7.00
- Referral Fee (15%): $4.50
- FBA Fee: $5.50
- Inbound Shipping: $1.00
Your Net Profit would be $12.00. Your Profit Margin would be 40%, and your ROI would be 171% ($12 profit / $7 cost).