Amazon FBA Profit Calculator
Amazon FBA (Fulfilled by Amazon) lets sellers store inventory in Amazon's warehouses and have Amazon handle picking, packing, shipping, and customer service. The convenience comes at a cost - referral fees, fulfilment fees, and storage fees combine to take 30-40% of revenue on many products. Knowing your actual profit before you invest in inventory is critical. This Amazon FBA profit calculator lets you enter your selling price, cost of goods sold, inbound shipping cost, FBA fulfilment fee, referral fee percentage, monthly storage fee, and advertising spend to calculate net profit per unit and return on investment. Enter the expected monthly units sold to scale to monthly and annual profit projections.
Amazon FBA profit formula
Referral Fee = Selling Price x Referral Rate / 100
Total Fees = Referral Fee + FBA Fee + Storage Fee + PPC per Unit
Total Cost per Unit = COGS + Inbound Shipping + Total Fees
Net Profit per Unit = Selling Price - Total Cost per Unit
Profit Margin = Net Profit / Selling Price x 100
ROI = Net Profit / (COGS + Inbound Shipping) x 100
Frequently asked questions
What fees does Amazon charge FBA sellers?
Amazon FBA fees include: a referral fee (typically 8-15% of the sale price, varying by category), FBA fulfilment fees (based on product size and weight, roughly $3-7 for standard items), and monthly storage fees ($0.78 per cubic foot standard-size, October-December rates are higher). Optional costs include advertising (PPC), FBA prep service fees, and removal/disposal fees.
What is a good profit margin for Amazon FBA?
A healthy Amazon FBA net margin is 20-30% or more after all fees, COGS, and advertising. Margins below 15% leave little buffer for returns, storage overages, and price competition. Many experienced FBA sellers target a minimum 25% net margin and a return on investment of 50-100% or more before committing to a product.
How do I calculate my Amazon FBA ROI?
ROI = (Net Profit / Total Investment) x 100. Total investment includes your cost of goods, shipping to Amazon, and any upfront advertising spend. If you invested $2,000 in inventory and earned $800 net profit, your ROI is 40%. ROI helps you compare Amazon FBA to other uses of your capital.
What is the Amazon referral fee?
The referral fee is Amazon's commission on each sale, ranging from 6% to 45% depending on category. Most general merchandise categories charge 8-15%. Amazon charges the referral fee on the total sale price including any shipping or gift wrap charges. The minimum referral fee per item is $0.30 for most categories.
Do FBA sellers pay taxes on Amazon income?
Yes. Amazon provides sellers with a 1099-K if you make 200+ transactions or $20,000+ in annual sales (lower thresholds may apply from 2025). FBA profits are business income subject to income tax and self-employment tax. You can deduct COGS, FBA fees, advertising, software, and other ordinary business expenses.
Sources
- Amazon Seller Central: FBA fees schedule.
- IRS: Self-employed tax center.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.