Accurately estimate your net profit, margins, and ROI after Amazon fees.
Net Profit
$0.00
Profit Margin
0.00%
Unit ROI
0.00%
Understanding Your Amazon FBA Profitability
Selling on Amazon via the Fulfillment by Amazon (FBA) program offers incredible scale, but the fee structure can be complex. To ensure your business remains sustainable, you must calculate your "True Net Profit" by accounting for every expense from the factory to the customer's doorstep.
Key Metrics in FBA Calculations
Referral Fee: This is essentially Amazon's commission for selling on their platform. For most categories, this is 15% of the total sale price.
FBA Fulfillment Fee: This covers picking, packing, and shipping your product. It is determined by the size and weight tier of your item.
COGS (Cost of Goods Sold): The total price paid to your manufacturer per unit, including any packaging.
ROI (Return on Investment): Calculated as (Net Profit / Product Cost). This shows how effectively your capital is working for you.
Example Calculation
If you sell a yoga mat for $40.00:
Product Cost: $10.00
Referral Fee (15%): $6.00
FBA Fee: $7.50
Shipping to Amazon: $1.00
Total Costs: $24.50
Net Profit: $15.50 (38.75% Margin)
How to Improve Your Margins
To increase your profitability, consider optimizing your packaging to drop into a lower FBA size tier. Additionally, improving your "ACOS" (Advertising Cost of Sales) will reduce the "Other Costs" per unit, directly boosting your bottom line. Always use an Amazon FBA calculator before launching a new product to ensure the numbers make sense at various price points.
function calculateFBAProfit() {
var salePrice = parseFloat(document.getElementById('fba_salePrice').value) || 0;
var productCost = parseFloat(document.getElementById('fba_productCost').value) || 0;
var shippingToAmazon = parseFloat(document.getElementById('fba_shippingToAmazon').value) || 0;
var fulfillmentFee = parseFloat(document.getElementById('fba_fulfillmentFee').value) || 0;
var referralRate = parseFloat(document.getElementById('fba_referralRate').value) || 0;
var otherCosts = parseFloat(document.getElementById('fba_otherCosts').value) || 0;
// Logic: Referral fee calculation
var referralFeeValue = salePrice * (referralRate / 100);
// Logic: Total expenses per unit
var totalExpenses = productCost + shippingToAmazon + fulfillmentFee + referralFeeValue + otherCosts;
// Logic: Final Profit
var netProfit = salePrice – totalExpenses;
// Logic: Margin and ROI
var margin = 0;
if (salePrice > 0) {
margin = (netProfit / salePrice) * 100;
}
var roi = 0;
if (productCost > 0) {
roi = (netProfit / productCost) * 100;
}
// Display results
var profitEl = document.getElementById('fba_resProfit');
profitEl.innerHTML = '$' + netProfit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Color coding for profit
if (netProfit > 0) {
profitEl.className = 'fba-result-value fba-profit-positive';
} else if (netProfit < 0) {
profitEl.className = 'fba-result-value fba-profit-negative';
} else {
profitEl.className = 'fba-result-value';
}
document.getElementById('fba_resMargin').innerHTML = margin.toFixed(2) + '%';
document.getElementById('fba_resROI').innerHTML = roi.toFixed(2) + '%';
}