Amazon FBA Profit Calculator
Calculate your net profit, margins, and ROI for Amazon FBA products.
Total Revenue:
Total Amazon Fees:
Total Expenses:
Net Profit per Unit:
Net Margin:
ROI (Return on Investment):
How the Amazon FBA Profit Calculator Works
Success on Amazon depends heavily on understanding your unit economics. This calculator helps you break down every cost associated with the Fulfillment by Amazon (FBA) program. By entering your selling price and various costs, you can determine if a product is viable before you invest in inventory.
Understanding Key Metrics
- Product Cost (COGS): The total cost to manufacture or purchase one unit of your product.
- Referral Fee: This is Amazon's "commission" for selling on their platform, typically 15% for most categories.
- FBA Fulfillment Fee: The cost Amazon charges to pick, pack, and ship your product to the customer. This depends on weight and dimensions.
- Advertising (PPC): Your total monthly ad spend divided by the number of units sold. This is crucial for calculating "true" profit.
Example Calculation
If you sell a yoga mat for $40.00 and it costs you $10.00 to make, your Referral Fee (15%) would be $6.00. If the FBA fulfillment fee is $7.00 and shipping to Amazon is $1.00, your total costs before advertising are $24.00. Without PPC spend, your profit would be $16.00 per unit, giving you a 40% margin.
Tips to Improve FBA Margins
To increase your profit, consider optimizing your packaging to reduce dimensions, which can lower your FBA fulfillment tier. Additionally, improving your product's conversion rate can lower your PPC cost per unit, directly impacting your bottom line.