Method and assumptions
Use your category referral rate and actual fulfillment fee. The calculator deliberately keeps these inputs editable because Amazon fees depend on category, size tier and marketplace.
Net profit = sales revenue - referral fee - fulfillment fee - product cost - inbound freight - returns allowance - advertising - other costs.
Worked scenario
Use one representative SKU and enter its selling price, product cost, inbound cost, fulfillment charge, referral rate, storage allowance, returns allowance and advertising spend per order. Compare merchant fulfillment with FBA using the same customer price and return assumption instead of comparing fee lines from unrelated products.
How to interpret the result
Contribution after ads is the most useful decision result for price and campaign changes. A positive product margin before ads does not establish that the SKU can support its current acquisition cost. Storage, aged inventory, removal and inbound placement can be period or event charges, so add an allowance derived from actual inventory behavior rather than assuming the base fulfillment fee is complete.
Input reference
- Currency
- Example default: USD
- Sale price per unit
- Example default: 39.99
- Units sold
- Example default: 1
- Product cost per unit
- Example default: 10
- Referral fee rate
- Example default: 15%
- Fulfillment fee per unit
- Example default: 5.25
- Inbound freight per unit
- Example default: 1.2
- Returns allowance
- Example default: 3%
- Advertising cost
- Example default: 4
- Other order costs
- Example default: 0
Common mistakes
- Applying a default referral rate to a category with a tier or minimum fee.
- Leaving inbound transportation and prep outside product economics.
- Comparing current ad spend with gross sales from a different attribution window.
Before using the result
- Verify category, price tier, plan and fulfillment method.
- Add a per-unit allowance for storage, returns and removals.
- Compare the estimate with the Amazon revenue calculator and settlement.
Questions to check before deciding
Can this calculate both FBA and FBM?
Yes. For FBA, enter the published fulfillment fee. For FBM, enter your own pick, pack and delivery cost as the fulfillment fee.
Does the default referral rate apply to every category?
No. It is only a starting assumption. Select the current rate for your category and marketplace from Amazon official pricing.
Independent calculator. Not affiliated with or endorsed by the platforms mentioned.