Amazon Profit Calculator
This Amazon profit calculator helps sellers calculate their real net profit per product by accounting for all Amazon fees, cost of goods, advertising costs, taxes, returns, and fulfillment expenses.
Net Profit
Revenue
Profit Margin
Cost Breakdown
Break-Even Analysis
Break-Even Price
Break-Even Units
Related Calculators
What Is an Amazon Profit Calculator?
An Amazon profit calculator is a tool that helps sellers determine their true net profit per product by subtracting all costs from revenue. Unlike Amazon's built-in revenue calculator, a comprehensive profit calculator accounts for hidden costs like returns, advertising (ACOS), and long-term storage fees that significantly impact profitability.
Why Accurate Profit Calculation Matters
Studies show that 82% of businesses fail due to cash flow problems. For Amazon sellers, hidden costs can reduce expected profits by 15-30%. Calculating your true profit before investing helps you avoid surprises and make informed decisions.
How Amazon Profit Is Calculated
Amazon product profit is calculated by subtracting all costs from your total revenue. The formula is straightforward but requires tracking multiple cost categories:
Amazon Profit Formula
Revenue includes:
- • Listing price (excluding sales tax)
- • Shipping charged to customer
Costs include:
- • Product cost (COGS)
- • Amazon referral fee (8-45%)
- • FBA fulfillment fee
- • Advertising (ACOS)
- • Returns and refunds
Example Calculation
Amazon Fees Explained
Understanding Amazon's fee structure is critical for accurate profit calculation. These fees can consume 30-50% of your selling price.
Referral Fee
Amazon's commission on each sale. Varies by category:
- • Most categories: 15%
- • Electronics: 8%
- • Jewelry: 20%
- • Amazon devices: 45%
FBA Fulfillment Fee
Fee for picking, packing, and shipping. Based on size tier:
- • Small standard: $3.22+
- • Large standard: $4.75+
- • Small oversize: $9.73+
- • Large oversize: $89.98+
Storage Fees
Monthly fees based on cubic feet:
- • Standard (Jan-Sep): $0.87/cu ft
- • Standard (Oct-Dec): $2.40/cu ft
- • Aged 181-270 days: +$1.50/cu ft
- • Aged 271-365 days: +$3.00/cu ft
Break-Even & ROI Analysis
Beyond profit calculation, understanding your break-even point and ROI helps you make better inventory and pricing decisions.
Break-Even Price
The minimum selling price to cover all costs. Calculated as:
Sell above this price to generate profit.
ROI (Return on Investment)
Measures how efficiently your capital is working:
Good Amazon ROI: 20%+ | Excellent: 50%+
Profit Margin Benchmarks
<10% = Poor (reconsider product) | 10-15% = Average | 15-25% = Good (healthy business) | 25%+ = Excellent (premium positioning)
How to Use This Amazon Profit Calculator
1. Revenue Section
- Units Sold: Number of units you plan to sell
- Listing Price: Price customers see (including tax)
- Shipping Charged: Shipping fee charged to customers
- Sales Tax Rate: Your applicable tax rate (optional)
2. Cost of Goods
- Unit Cost: Your product cost (excluding tax)
- Shipping Cost: Cost to ship to Amazon
- Other Costs: Packaging, labeling, prep fees
3. Amazon Fees
- Referral Fee: Amazon's percentage (8-45%)
- FBA Fee: Fulfillment fee per unit
- Other Fees: Storage, removal, additional services
4. Marketing & Returns
- ACOS: Advertising cost of sales percentage
- Return Rate: Expected return percentage
- Other Costs: Additional marketing expenses
Frequently Asked Questions
What is a good profit margin for Amazon sellers?
A healthy profit margin for Amazon sellers typically ranges from 15-25%. Margins below 10% are considered poor and may require product or pricing adjustments. Premium private label products can achieve 30%+ margins, while electronics typically see 5-10% margins.
How do I calculate Amazon product profit?
To calculate Amazon product profit, subtract all costs from your revenue. Costs include: unit cost, shipping to Amazon, Amazon referral fees (typically 8-15%), FBA fulfillment fees, marketing costs (ACOS), return costs, and other fees. Our calculator automates this calculation and shows your net profit, profit margin percentage, and ROI.
What fees affect Amazon seller profitability?
Multiple fees impact Amazon seller profitability: referral fees (8-45% depending on category), FBA fulfillment fees (based on size and weight), storage fees (monthly and long-term), advertising costs (ACOS), return processing fees, and other Amazon service fees. Our profitability calculator accounts for all these costs to give you an accurate profit analysis.
How do I calculate ROI for Amazon products?
ROI (Return on Investment) for Amazon products is calculated by dividing your profit by your total cost of goods sold (COGS) and multiplying by 100. A good ROI for Amazon sellers is typically 20% or higher. Higher ROI means your capital is working more efficiently.
Profit Optimization Strategies
Reduce COGS
- • Negotiate with suppliers based on volume
- • Source from different regions
- • Optimize packaging dimensions
Minimize Amazon Fees
- • Optimize product size tier
- • Reduce storage time (avoid aged fees)
- • Consider FBM for slow movers
Optimize Advertising
- • Target ACOS below your profit margin
- • Focus on high-converting keywords
- • Use negative keywords aggressively
Reduce Returns
- • Improve product quality
- • Accurate product descriptions
- • Better packaging to prevent damage