How to calculate Amazon FBA profit
- Enter your selling price, your product cost and what it costs to ship each unit to Amazon’s warehouse (freight, customs duty, prep and labels).
- Check the referral fee. It is 15% for most categories; some categories are 8%, 12% or 17%.
- Enter the FBA fulfilment fee for your product’s size tier and the monthly storage cost per unit. You find both in Seller Central or Amazon’s Revenue Calculator.
- Add your ad spend per unit (PPC cost divided by units sold) and any other cost, such as packaging or returns.
- See your profit per unit, margin, ROI, monthly profit and the break-even price at once.
The formula
Profit = selling price − referral fee − FBA fee − storage − product cost − shipping to Amazon − ads − other costs.
- Profit margin = profit ÷ selling price × 100.
- ROI (return on investment) = profit ÷ (product cost + shipping) × 100. It shows how hard your stock money works.
- Break-even price = the lowest price at which you make neither profit nor loss.
Worked example
A product sells for $24.99. Referral fee 15% = $3.75, FBA fee $5.40, storage $0.20, product cost $6.00, shipping to Amazon $1.20 and ads $2.50 per unit. Profit = 24.99 − 3.75 − 5.40 − 0.20 − 6.00 − 1.20 − 2.50 = $5.94 per unit. Margin = 23.77%, ROI = 82.5%. Type these numbers above and you will get the same result.
What is a good margin on Amazon?
Many sellers aim for at least 20–25% profit margin after ads and an ROI of 50–100%, which leaves room for price wars, returns and slow months. Track your ad efficiency with the ACoS calculator and keep titles inside the new limit with the Amazon character counter.
Frequently asked questions
How is Amazon FBA profit calculated?
Profit is the selling price minus the referral fee, FBA fulfilment fee, storage, product cost, shipping to Amazon, ad spend and any other costs per unit.
What is the Amazon referral fee?
It is a percentage of the selling price that Amazon charges on each sale, 15% in most categories and between 8% and 17% in others, usually with a minimum fee per item.
Where do I find my FBA fulfilment fee?
In Seller Central, on the product’s fee preview, or in Amazon’s Revenue Calculator. It depends on the size and weight tier of your product.
What is the difference between margin and ROI?
Margin compares profit with the selling price. ROI compares profit with the money you spent on stock and shipping. A product can have a modest margin but a high ROI if it is cheap to buy.
What is a break-even price?
It is the selling price at which your profit is exactly zero after all fees and costs. Selling below it loses money on every unit.
Does this calculator work for Amazon UK, UAE or India?
Yes. Choose your currency and enter the fees for your marketplace. The maths is the same everywhere.