Amazon Sales Margin Calculator

Enter your product costs and Amazon fees to see your true profit per unit, margin, and return on investment before you commit to sourcing.

Free Ecommerce Tool

Amazon Sales Margin Calculator

Enter your product costs and Amazon fees to see your true profit per unit, margin, and return on investment before you commit to sourcing.

Your product

Figures in

No match found.

What the customer pays for one unit on the Amazon listing.
What it costs you to manufacture or buy one unit, before shipping.
The cost to get one unit from your supplier to Amazon's warehouse, per unit.

Amazon fees

The percentage Amazon takes on every sale, set by your product category. Most categories sit at 15%, but this varies. Check your category's exact rate in Seller Central.
%
Amazon's fee for picking, packing and shipping one unit to the customer. This depends on your product's exact size and weight tier. Find the precise figure for your product in Seller Central or the official FBA revenue calculator, then enter it here.
Amazon's monthly charge for keeping one unit in their warehouse, based on the space it occupies. Higher during October to December.
Your average ad spend that results in one sale (ACOS applied). Most sellers need some PPC spend, particularly early on. A common starting estimate is 15 to 30% of the selling price.
Anything else that applies per unit: prep service fees, labelling, returns processing, or a closing fee for media categories.
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Fulfillment and storage fees change by marketplace and by season, and this tool cannot look them up for you. Pull your product's exact figures from Seller Central or Amazon's own FBA revenue calculator before relying on this for a real sourcing decision.

Net profit per unit
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Waiting for your numbers
Show in

No match found.

—Profit margin
—Return on investment
—Break-even price
Selling price—
Cost of goods + shipping—
Referral fee—
Fulfillment fee—
Storage + advertising + other—
Net profit per unit—
Enter your selling price and costs on the left, and your profit breakdown appears here instantly.
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Referral fee percentages shown are typical published rates and vary by exact sub-category and marketplace. Fulfillment and storage fees must be entered manually since they depend on your product's specific size, weight and marketplace, and change over time. Live currency conversion, when turned on, uses real exchange rates and is shown as an approximate reference only. Rates by ExchangeRate-API, updated once daily. Always verify final Amazon fee figures in Seller Central before making a sourcing or pricing decision.

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01Overview

What does the Amazon sales margin calculator do?

Selling on Amazon looks profitable until the fees arrive. Referral fees, FBA fulfilment, monthly storage, inbound shipping and advertising can quietly take half of the selling price or more.

This free Amazon profit calculator adds every cost to your selling price and returns your true profit per unit, profit margin, return on investment and break-even price. Use it before you source a product, when you set prices, or when you review an existing listing.

It works for FBA and for merchant-fulfilled sellers. Enter your own fee figures from Seller Central so the result reflects your exact category and size tier.

Quick answer

Amazon profit per unit = selling price − cost of goods − inbound shipping − referral fee − FBA fee − storage − ad cost per unit. Margin = profit ÷ selling price. ROI = profit ÷ (cost of goods + inbound shipping).

  • Free, no sign-up
  • FBA and FBM
  • Margin, ROI and break-even
  • Any currency
02How to use

How to use the Amazon Sales Margin Calculator

Have your landed product cost and the fee figures from Seller Central or the FBA revenue calculator ready.

  1. Enter your product

    Selling price, cost of goods per unit and inbound shipping to Amazon's warehouse.

  2. Add Amazon fees

    Referral fee percentage for your category, FBA fulfilment fee and monthly storage per unit.

  3. Add advertising

    Your ad spend per unit sold, or your TACoS applied to the price.

  4. Check the verdict

    See profit per unit, margin, ROI and the lowest price you can sell at without losing money.

03How it works

How Amazon profit and margin are calculated

Every fee is either a percentage of the price or a fixed cost per unit.

Where a $29.99 sale goes
$7.20$4.50$5.40$4.00$8.89
Product + shipping $7.20Referral fee $4.50FBA + storage $5.40Ads $4.00Your profit $8.89
Amazon profit formulasProfit = Price - COGS - Shipping - (Price x Referral %) - FBA fee - Storage - AdsMargin (%) = Profit / Price x 100ROI (%) = Profit / (COGS + Shipping) x 100

Referral fees in most categories sit around 15%, but some are lower or tiered. Always check your category's current rate in Seller Central.

Worked example

A seller lists a silicone kitchen utensil set via FBA.

Selling price
$29.99
COGS + inbound shipping
$7.20
Referral fee (15%)
$4.50
FBA + storage
$5.40
Ads per unit
$4.00
Profit is $8.89 per unit, a 29.6% margin and 123% ROI.
04Reference

Amazon costs to include

Sellers most often lose money by forgetting the smaller recurring costs.

CostHow it is chargedWhere to find it
Referral feePercentage of selling price, by categorySeller Central fee schedule
FBA fulfilment feeFixed per unit, by size and weight tierFBA revenue calculator
Monthly storagePer cubic foot, higher in Q4Inventory reports
Inbound shippingPer shipment, divide by unitsFreight invoices
Advertising (PPC)Per click, divide by units soldAdvertising console, TACoS
Returns and refundsLost units and return processingReturns reports
05Tips

How to improve your Amazon margins

A few percentage points of margin decide whether a product is worth scaling.

Do this

  • Shrink the packageDropping one FBA size tier can save more per unit than any supplier negotiation.
  • Watch TACoSTotal ad cost of sales shows ad spend against all sales. Rising TACoS means ads are eating profit.
  • Manage inventory ageLong-term storage fees punish slow stock. Send smaller, more frequent shipments.
  • Test price increasesA 5% price rise flows straight to profit if conversion holds. Test in small steps.

Amazon margin mistakes to avoid

  • Forgetting ad spendMost products need PPC to sell. Leaving ads out of the margin overstates profit.
  • Ignoring Q4 storage ratesStorage fees rise sharply from October to December. Plan inventory around it.
  • Using the wrong size tierA few millimetres can push a product into a costlier tier. Measure the packed product.
  • Confusing margin and ROIA 25% margin can be a 100% ROI. Know which one your target refers to.
06FAQ

Frequently asked questions

How do I calculate profit on Amazon?

Subtract cost of goods, inbound shipping, referral fee, FBA fee, storage and advertising from the selling price. The calculator does this for you and shows margin and ROI.

What is a good profit margin on Amazon?

Many sellers aim for 20% to 30% net margin after all fees and ads. Lower margins leave little room for price drops or rising ad costs.

How much does Amazon take per sale?

Usually a referral fee of around 15% of the price in most categories, plus FBA fulfilment fees if Amazon ships for you, plus storage. Altogether fees often take 30% to 45% of the price.

What is the difference between margin and ROI?

Margin is profit divided by selling price. ROI is profit divided by what you invested in the product. ROI is usually the bigger number.

Does this work for FBM sellers?

Yes. Set the FBA and storage fields to zero and enter your own shipping cost per order instead.

What is break-even price?

The lowest price you can sell at without losing money once every fee and cost is covered.

The Big Growth team

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