Total Loan Cost Calculator

Amazon FBA Profit Calculator

Net Profit
$0.00
Profit Margin
0%
Total ROI
0%
Total Fees
$0.00

Understanding Amazon FBA Fees and Profitability

Selling on Amazon through Fulfillment by Amazon (FBA) is a powerful way to scale an e-commerce business, but understanding your true margins is critical for long-term success. This Amazon FBA Profit Calculator helps you break down the various costs involved in a single sale to determine if a product is worth sourcing.

Key Components of the Calculation:

  • Cost of Goods (COG): This is the manufacturing cost per unit, including any packaging provided by the supplier.
  • Amazon Referral Fee: This is essentially a commission Amazon takes for bringing you the customer. For most categories, this is 15% of the total selling price.
  • Fulfillment Fee (FBA Fee): This covers the picking, packing, and shipping of your item to the customer. It is determined by the size and weight of your product.
  • Storage Fees: Amazon charges for keeping your items in their warehouses. This fluctuates based on the season (higher in Q4) and the volume your inventory occupies.

How to Use the Results

A healthy Amazon business typically aims for a 30% Profit Margin and a 100% ROI (Return on Investment). If your ROI is below 50%, you may find it difficult to reinvest in new inventory while covering overhead costs like advertising (PPC) and software subscriptions.

Example: If you sell a spatula for $25.00, buy it for $5.00, and pay $10.00 in total Amazon fees, your net profit is $10.00. Your margin is 40%, and your ROI is 200%. This would be considered a very strong product.

function calculateFbaProfit() { var sellingPrice = parseFloat(document.getElementById('sellingPrice').value) || 0; var costOfGoods = parseFloat(document.getElementById('costOfGoods').value) || 0; var shippingToFba = parseFloat(document.getElementById('shippingToFba').value) || 0; var referralFeePercent = parseFloat(document.getElementById('referralFeePercent').value) || 0; var fbaFee = parseFloat(document.getElementById('fbaFee').value) || 0; var otherFees = parseFloat(document.getElementById('otherFees').value) || 0; // Logic: Referral Fee is a percentage of selling price var referralFeeAmount = sellingPrice * (referralFeePercent / 100); // Total Amazon + Logistics Expenses var totalExpenses = costOfGoods + shippingToFba + referralFeeAmount + fbaFee + otherFees; var totalFeesOnly = referralFeeAmount + fbaFee + otherFees; // Profit Calculation var netProfit = sellingPrice – totalExpenses; // Margin Calculation (Profit / Selling Price) var margin = (sellingPrice > 0) ? (netProfit / sellingPrice) * 100 : 0; // ROI Calculation (Profit / (COG + Shipping to FBA)) var totalInvestment = costOfGoods + shippingToFba; var roi = (totalInvestment > 0) ? (netProfit / totalInvestment) * 100 : 0; // Update UI document.getElementById('fba-results').style.display = 'block'; document.getElementById('netProfit').innerHTML = '$' + netProfit.toFixed(2); document.getElementById('profitMargin').innerHTML = margin.toFixed(2) + '%'; document.getElementById('roi').innerHTML = roi.toFixed(2) + '%'; document.getElementById('totalFees').innerHTML = '$' + totalFeesOnly.toFixed(2); // Color coding for profit/loss if (netProfit < 0) { document.getElementById('netProfit').style.color = '#d32f2f'; document.getElementById('profitMargin').style.color = '#d32f2f'; document.getElementById('roi').style.color = '#d32f2f'; } else { document.getElementById('netProfit').style.color = '#2e7d32'; document.getElementById('profitMargin').style.color = '#2e7d32'; document.getElementById('roi').style.color = '#2e7d32'; } }

Leave a Comment