Amazon FBA Profit & Margin Calculator
Total Fees:
Break-even Price:
How to Use the Amazon FBA Profit Calculator
Calculating your potential margins before sourcing a product is the difference between a successful Amazon business and a costly mistake. Our Amazon FBA Profit Calculator helps you visualize your bottom line by factoring in all common fees associated with the Fulfillment by Amazon program.
Understanding the Core Metrics
- Selling Price: The list price of your product on the Amazon marketplace.
- COGS (Cost of Goods Sold): The total cost to manufacture or purchase one unit from your supplier.
- Amazon Referral Fee: Typically 15% for most categories, this is the "commission" Amazon takes for providing the customer.
- FBA Fulfillment Fee: The flat fee covering picking, packing, and shipping to the customer. This depends on product size and weight.
- Marketing/PPC: Don't forget your advertising spend. Most successful sellers allocate $1-$3 per unit for Pay-Per-Click ads.
Realistic Example: Kitchen Gadget
Imagine you are selling a premium silicone spatula for $24.99. Your manufacturing cost is $5.00 per unit. Shipping it to an Amazon warehouse costs $0.50 per unit. If the FBA fulfillment fee is $5.40 and you spend $2.50 on ads per sale:
- Revenue: $24.99
- Amazon Referral Fee (15%): $3.75
- FBA Fee: $5.40
- Total Expenses: $17.15 (including COGS and PPC)
- Net Profit: $7.84
- Margin: 31.3%
Why ROI and Margin Matter
While Net Profit tells you how much cash you keep per sale, ROI (Return on Investment) tells you how hard your money is working. A 100% ROI means for every $1 spent on stock, you get $1 back in profit. Professional Amazon sellers usually aim for a Net Margin of at least 20% to account for returns and price fluctuations.