Is Amazon FBA Worth It? Calculate Your Real Profit Margin.

Amazon FBA looks deceptively simple on the surface: source a product, ship it to Amazon, collect revenue. The fees are where most new sellers get surprised. Amazon charges a referral fee (typically 8–15% of selling price), a fulfillment fee based on product size and weight (often $3–$8+ per unit), and a monthly storage fee for inventory sitting in their warehouse. Stack your cost of goods sold on top, add advertising spend if you're running PPC, and a product selling for $35 can net you just $5–$8 — or nothing at all. This calculator models Amazon FBA profitability the way experienced sellers evaluate products: starting from selling price and working backward through every fee to arrive at true net profit per unit. It calculates your referral fee at Amazon's category rate, fulfillment cost from your product's weight and dimensions, COGS, and optional advertising cost. The result is your margin per unit, monthly profit at your sales volume, return on investment, and break-even price — the minimum you can charge without losing money. The critical number to evaluate is ROI: how much profit you generate relative to the capital you deployed in inventory. A 25% ROI on a product you can turn over monthly is excellent; a 10% ROI on a product that sits for 90 days is effectively 3.3% monthly — worse than a high-yield savings account and far worse than the risk warrants. Use this calculator before committing to any product, not after. Most losing FBA products were predictably losing before the first unit was ordered.

Referral Fee = Selling Price × Referral Fee % Total Amazon Fees = Referral Fee + FBA Fulfillment Fee + Storage (per unit) + Other Fees Net Revenue = Selling Price – Total Amazon Fees Profit Per Unit = Net Revenue – COGS – PPC Cost Per Unit Profit Margin = Profit Per Unit / Selling Price × 100 Monthly Profit = Profit Per Unit × Monthly Sales Volume ROI = Monthly Profit / (COGS × Monthly Sales) × 100 Break-Even Price = (COGS + Fulfillment Fee + Fixed Fees Per Unit) / (1 – Referral Fee %)