Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA products.
Total Revenue:
$0.00
Total Amazon Fees:
$0.00
Net Profit:
$0.00
Net Margin:
0%
Return on Investment (ROI):
0%
How to Calculate Amazon FBA Profitability
Understanding your numbers is the most critical factor in succeeding as an Amazon FBA (Fulfillment by Amazon) seller. Many new sellers focus solely on the "Top Line" revenue and forget that Amazon's fee structure can consume a significant portion of the margins.
This calculator breaks down the five primary costs associated with selling a physical product through Amazon's logistics network:
- Selling Price: The final amount the customer pays for your product.
- Cost of Goods Sold (COGS): The total manufacturing and packaging cost per unit.
- Referral Fee: Amazon's "commission" for bringing you the customer, usually 15% for most categories.
- Fulfillment Fee: The cost for Amazon to pick, pack, and ship your item. This depends on the size and weight of the product.
- Storage Fees: Monthly costs for keeping your inventory in Amazon warehouses.
Realistic Example:
If you sell a yoga mat for $35.00, and your manufacturing cost is $10.00, you aren't making $25.00 profit. After a 15% referral fee ($5.25), FBA shipping fees ($7.50), and storage costs ($1.00), your actual take-home profit is closer to $11.25. This results in a 32% net margin.
If you sell a yoga mat for $35.00, and your manufacturing cost is $10.00, you aren't making $25.00 profit. After a 15% referral fee ($5.25), FBA shipping fees ($7.50), and storage costs ($1.00), your actual take-home profit is closer to $11.25. This results in a 32% net margin.
Why Monitoring Net Margin and ROI Matters
While Net Margin tells you how much of every dollar you keep, ROI (Return on Investment) tells you how hard your money is working. For FBA sellers, a healthy ROI is typically 100% or higher, meaning you double your product investment with every sale, allowing you to reinvest and scale quickly.
Always remember to account for "hidden" costs like PPC advertising, product photography, and potential returns when finalizing your business plan. Use this calculator during your product research phase to ensure a niche is actually viable before placing a large order with a supplier.