Amazon Profit Calculator

HOW TO CALCULATE

How to calculate Amazon FBA profit

Amazon FBA profit is the money left after you subtract product cost, shipping, and Amazon fees from your selling price. The formula is profit = selling price − referral fee − FBA fulfillment fee − product cost − shipping. Profit margin then expresses that profit as a percentage of the selling price.

Here is a worked example. You sell a home and kitchen item for $25.00. The category referral fee is 15%, so Amazon takes $3.75. The FBA fulfillment fee is $5.00, your product costs $7.00, and shipping the unit to Amazon's warehouse costs $1.05. Adding those up gives $16.80 in total costs, leaving a profit of $8.20 and a margin of about 32.8%.

The calculator above runs this math automatically as you type, and the breakdown panel shows exactly how much each fee and cost removes from the sale. That transparency matters, because a product can look profitable at a glance while a single fee quietly eats most of the margin. When you evaluate products at scale, an EasyClaw template can run this same calculation across a whole product list automatically.

AMAZON FEES

What are Amazon FBA fees?

Amazon charges two main per-unit fees on every FBA sale. The referral fee is a percentage of the selling price that varies by category. The FBA fulfillment fee is a fixed amount based on the product's size and weight, covering the cost of picking, packing, and shipping the order to the customer.

Beyond those two, sellers can also face storage fees for keeping inventory in Amazon's warehouses, plus advertising, returns, and other optional costs. This calculator focuses on the per-unit referral and fulfillment fees because those are the ones every sale pays, and it clearly excludes storage and other variable costs so the result stays transparent.

REFERRAL FEE

Amazon referral fee by category

The referral fee is usually a percentage of the selling price, and most categories charge 15%. But the rate is not uniform. Consumer Electronics is around 8%, while Clothing uses a tiered structure that rises with the price: about 5% up to $15, 10% between $15 and $20, and 17% above $20. Beauty is similar, charging 8% up to $10 and 15% above it. A few categories also apply a minimum fee per item.

That tiering is easy to get wrong if you assume a single flat percentage, which is why this calculator applies category-specific rules instead. Select your category and the correct rate is used automatically, so a $12 clothing item and a $25 clothing item are each charged at their own tier.

FULFILLMENT FEE

How the FBA fulfillment fee is set

The FBA fulfillment fee is a fixed amount per unit, but it is not one flat number. Amazon sets it by product size and weight, grouping items into size tiers such as small standard and large standard, with larger or heavier items costing more to fulfill. That is why two products with the same selling price can have very different profit, purely because one is bulkier than the other.

The calculator lets you enter your own fulfillment fee rather than guessing a generic figure. The most reliable way to fill it in is to check your product's size tier and weight, because the fee is one of the largest line items and a wrong estimate here can flip a profitable-looking product into a loser.

SELLING PLAN

Selling plan fees: Individual vs Professional

On top of per-unit fees, Amazon charges for the selling plan itself. The Individual plan costs $0.99 per item sold, which suits low-volume sellers. The Professional plan costs a flat $39.99 per month regardless of how many items you sell, which becomes cheaper per unit once you sell more than about 40 items a month.

Because the Professional plan is a monthly charge, its true per-unit cost depends on your sales volume, which is why this calculator keeps it out of the per-unit profit formula. The result here is your per-unit profit before selling-plan fees; add your own plan cost separately to get a complete monthly picture.

FBA VS FBM

FBA vs FBM: what is the difference?

FBA (Fulfillment by Amazon) means you ship inventory to Amazon and they store, pick, pack, and ship orders, charging a fulfillment fee per unit. FBM (Fulfillment by Merchant) means you handle storage and shipping yourself, so you pay your own shipping costs but not Amazon's fulfillment fee.

Choosing between them is a trade-off between cost and convenience. FBA fees are predictable per unit and unlock Prime delivery, but they add up on heavy items. FBM avoids that fee but hands you the packing and shipping work. This calculator models FBA; if you fulfill yourself, replace the FBA fulfillment fee with your own shipping and handling cost to reuse the same formula.

PROFIT MARGIN & BREAK-EVEN

What is a good margin, and how to find break-even

There is no single good margin, because it depends on category, competition, and business model. Higher-margin products leave room for advertising and returns, while lower-margin products need volume. As a rough rule, many sellers look for a margin comfortably above their ad spend, since a 15% margin can disappear quickly once you pay for clicks.

A more useful number is your break-even price — the lowest selling price where profit is exactly zero. Rearrange the formula and it is simply break-even = product cost + shipping + referral fee + fulfillment fee. Solve that and you know the floor below which every sale loses money. Use this calculator to vary the selling price until profit hits zero, then set your real price above that floor. The same profit-over-cost thinking applies to other asset types — see our rental property ROI calculator or solar ROI calculator to model returns elsewhere.

FAQ

Frequently asked questions about Amazon profit