How do I calculate profit on Amazon FBA?

Start with your selling price and subtract in this order: (1) Amazon referral fee (6%–45% by category), (2) FBA fulfillment fee ($3.22–$6.00+ by size/weight), (3) monthly storage fee per unit, (4) return costs (return rate × return processing fee), (5) your product cost (landed cost including freight to Amazon). What remains is your gross profit. If you're running PPC ads, subtract your ad spend (ACoS × revenue) to get net profit. The calculator above handles all of these automatically.

What is Amazon's referral fee?

Amazon's referral fee is a percentage of the selling price charged on every sale, regardless of fulfillment method (FBA or FBM). Rates range from 6% (consumer electronics) to 45% (Amazon device accessories). Most categories are 15%. Some categories have tiered rates — for example, Baby Products and Beauty charge 8% on items priced at or below $10 and 15% on items above $10. The referral fee is calculated on the total selling price including any shipping charged to the buyer.

What is a good profit margin for Amazon FBA?

Most experienced Amazon sellers target a minimum 20%–30% gross margin after all Amazon fees (referral + FBA fulfillment + storage) but before advertising. After advertising (typically 15%–25% ACoS for competitive categories), a healthy net margin is 10%–20%. Margins below 10% leave very little room for fee increases, competitive price pressure, or return rate spikes. Margins above 30% are achievable in less competitive categories or with strong brand positioning.

What is the difference between FBA and FBM on Amazon?

FBA (Fulfillment by Amazon) means Amazon stores, picks, packs, and ships your inventory. You pay FBA fulfillment fees and storage fees, but your listings are Prime-eligible and Amazon handles customer service and returns. FBM (Fulfillment by Merchant) means you handle all storage and shipping yourself. You avoid FBA fees but pay your own fulfillment costs, your listings are not Prime-eligible (unless you qualify for Seller Fulfilled Prime), and you handle customer service. FBA typically generates higher conversion rates due to Prime badge — the fee difference is often offset by higher sales velocity.

How do I calculate the minimum price for Amazon FBA?

Work backwards from your target net margin. Formula: Minimum Price = (Product Cost + FBA Fee + Storage + Return Cost) ÷ (1 − Referral Fee% − Target Net Margin% − ACoS%). Example: product cost $8.50, FBA fee $4.75, storage $0.15, return cost $0.43, referral fee 15%, target margin 15%, ACoS 20% → Minimum Price = $13.83 ÷ (1 − 0.15 − 0.15 − 0.20) = $13.83 ÷ 0.50 = $27.66. The minimum price calculator above does this automatically.

How much does Amazon FBA cost per unit?

FBA costs have two main components: fulfillment fees and storage fees. Fulfillment fees range from $3.22 (small standard, under 16oz) to $6.10+ (large standard, 2–3lb) for standard-size items, and $9.61+ for oversize items. Storage fees are $0.78/cubic foot/month (Jan–Sep) and $2.40/cubic foot/month (Oct–Dec peak season). A typical small standard product (e.g., a 12oz consumer goods item) incurs approximately $3.22–$4.75 in FBA fulfillment fees plus $0.10–$0.30/month in storage, depending on how quickly it sells.

Does Amazon charge fees on shipping revenue?

Yes. Amazon's referral fee is calculated on the total amount charged to the buyer, which includes any shipping fee you charge. If you charge $29.99 for the product and $4.99 for shipping, your referral fee is calculated on $34.98. For this reason, most FBA sellers set shipping to "free" (building shipping cost into the product price) — it simplifies fee calculation and matches buyer expectations for Prime-eligible listings.

Amazon Pricing

Amazon Markup & Profit Calculator

See every fee, layer by layer — and find out what you're actually keeping.

Most new Amazon sellers do the same mental math: selling price minus product cost equals profit. On Amazon, this is wrong by a factor of 2–3x. Between your selling price and your actual profit sit 4–6 distinct fee layers: a referral fee, an FBA fulfillment fee, monthly storage, possible closing fees, return costs, and advertising spend.

The calculator below builds your Amazon P&L from the ground up, showing each fee as it reduces your revenue — so you can see exactly where your money goes before you commit to a price or a product.

The most common Amazon pricing mistake: Calculating profit as Selling Price - Product Cost and forgetting the referral fee. On a $29.99 product in a 15% referral fee category, that is $4.50 you are not accounting for — on every single sale.

Calculator

Amazon FBA Profit Calculator

Enter your numbers — see the full fee waterfall in real time.

Amazon markup and profit calculator

Switch between FBA and FBM to compare the fee burden.

Your selling price on Amazon

$

Your landed cost per unit

$

CategoryUnit weight (oz)Size tier

FBA fee per unit

$

Monthly storage cost per unit

$

Estimated return rate

%

Include PPC advertising?

Fee waterfall

Selling Price$29.99(100%)

− Amazon Referral Fee (15%)− $4.50(15%)

Net Proceeds After Referral$25.49(85%)

− FBA Fulfillment Fee− $4.75(15.8%)

Net After Fulfillment$20.74(69.2%)

− Monthly Storage (per unit)− $0.15(0.5%)

− Return Cost− $0.14(0.5%)

Net After All Amazon Fees$20.45(68.2%)

− Product Cost (landed)− $8.50(28.3%)

Gross Profit$11.95(39.8%)

Gross Profit / Unit

$11.95

Gross Margin

39.8%

Net Profit (after ads)

$11.95

Net Margin

39.8%

Total Amazon Fees

$9.54 (31.8%)

Your Markup on Cost

140.6%

✅ Healthy margin. You have room to invest in advertising and absorb fee changes.

What's the minimum price you need?

Target net margin %

%

Minimum selling price (no ads)

$19.35

Minimum selling price (with ads)

$27.09

FBA vs FBM

FBA vs FBM — Which Is More Profitable for Your Product?

FBA costs more in fees but saves on fulfillment labor and unlocks Prime. FBM saves on Amazon fees but adds fulfillment complexity.

	FBA	FBM
Selling Price	$29.99	$29.99
Referral Fee	$4.50	$4.50
Fulfillment Cost	$4.75 (FBA fee)	$5.30 (your shipping)
Storage	$0.15	$0.00
Product Cost	$8.50	$8.50
Total Costs	$18.04	$18.39
Gross Profit	$11.95	$11.60
Gross Margin	39.8%	38.7%
Prime Eligible?	✅ Yes	❌ No (unless SFP)
Inventory Risk	Amazon warehouse	Your warehouse

FBA's higher fees are often offset by the conversion lift from Prime eligibility. If your FBM margin is 5% higher but your FBA conversion rate is 2× higher, FBA can generate more total profit despite the lower per-unit margin.

FBM makes more sense when your product is large or heavy, slow turning, or you already have fulfillment infrastructure that can match or beat Amazon's FBA cost. For most small, lightweight, fast-moving products, FBA's conversion premium can justify the higher fees.

Fee Guide

Amazon Fee Structure — What You're Actually Paying

Every fee in the calculator above comes from Amazon's published fee schedule. Here's what each one is and how it is calculated.

Referral Fees by Category

Category	Referral Fee %	Notes
Apparel & Accessories	17%
Automotive	12%
Baby Products	8% on <=$10 / 15% on >$10	Tiered
Beauty	8% on <=$10 / 15% on >$10	Tiered
Books	15%	+ $1.80 closing fee
Consumer Electronics	8%
Health & Personal Care	8% on <=$10 / 15% on >$10	Tiered
Home & Kitchen	15%
Jewelry	20% on <=$250 / 5% on >$250	Tiered
Kitchen	15%
Luggage	15%
Music	15%	+ $1.80 closing fee
Office Products	15%
Pet Supplies	15%
Shoes, Handbags & Sunglasses	15%
Sports & Outdoors	15%
Tools & Home Improvement	15%
Toys & Games	15%
Video Games	15%

Referral fees are calculated on the total selling price including shipping charged to the buyer. Minimum referral fee is $0.30 per item for most categories. Always verify current rates at Amazon's fee schedule — rates are updated periodically.

FBA Fulfillment Fees by Size Tier

Size Tier	Dimensions	Weight	FBA Fee (2025)
Small Standard	<=15"×12"×0.75", <=16oz	<=16oz	$3.22
Large Standard (<=1lb)	<=18"×14"×8"	<=1lb	$4.75
Large Standard (1-2lb)	<=18"×14"×8"	1-2lb	$5.40
Large Standard (2-3lb)	<=18"×14"×8"	2-3lb	$6.10
Large Standard (3-20lb)	<=18"×14"×8"	3-20lb	$6.10 + $0.16/lb over 3lb
Small Oversize	<=60"×30", <=70lb	<=70lb	$9.61 + $0.38/lb over 1lb
Medium Oversize	<=108", <=150lb	<=150lb	$19.97 + $0.39/lb over 1lb
Large Oversize	>108", <=150lb	<=150lb	$89.98 + $0.83/lb over 90lb

FBA fees include picking, packing, shipping, customer service, and returns processing. Fees shown are approximate 2025 rates — verify current rates in Seller Central. Dimensional weight may apply for large, lightweight items.

Other Amazon Fees

Monthly Storage Fees

Jan–Sep: $0.78/cubic foot (standard size)
Oct–Dec (peak): $2.40/cubic foot (standard size)
Oversize: $0.56/cubic foot (Jan–Sep), $1.40/cubic foot (Oct–Dec)

Long-Term Storage Fees

Items stored >365 days: $6.90/cubic foot or $0.15/unit, whichever is greater
Charged monthly

Returns Processing Fee

Charged when Amazon provides free return shipping to buyer
Equals the FBA fulfillment fee for that item

Closing Fee

$1.80 per unit for Books, Music, Video, DVD, Software, Video Games

Principles

Three Pricing Principles Every Amazon Seller Needs

Principle 1

Always Calculate From Net Proceeds, Not Selling Price

Your revenue on Amazon is not your selling price. It is your selling price minus the referral fee. On a $29.99 item with a 15% referral fee, your net proceeds are $25.49 — that is your real starting point for all other calculations. For the underlying pricing math, keep the markup formula close.

Principle 2

Set a Margin Floor Before You Set a Price

Before you list a product, calculate the minimum price that generates your target net margin. Never price below it for launch promotions, competitive matching, or coupons. If a competitor is below your floor, you cannot profitably match it. For the underlying pricing math, keep the markup formula close.

Principle 3

ACoS Is a Cost of Goods on Amazon

Advertising Cost of Sale is not just a marketing metric on Amazon. A 25% ACoS means $0.25 in ads for every $1.00 in ad-attributed revenue, and that comes directly out of your margin. For the underlying pricing math, keep the markup formula close.

Mistakes

3 Amazon Pricing Mistakes That Destroy Margins

Using the Wrong Referral Fee Rate

Amazon's referral fees vary from 6% to 45% by category, and some categories have tiered rates that change at price thresholds. A seller who assumes 15% across the board will be wrong for much of their catalog.

Ignoring Storage Fees for Slow-Moving Products

FBA storage fees look small per unit per month until a product sits for 6–12 months. For low-margin, slow-moving products, storage fees can eliminate all remaining profit.

Launching at a Price You Can't Sustain

Many sellers launch low to generate initial reviews and ranking. That only works if the launch price is above your floor. Launching below your floor means every launch sale loses money.

Related Tools

Related Tools & Guides

Use the markup calculator, compare markup vs margin, review markup by industry, or switch to a reverse markup calculator when you need to work backwards from a market price.

Calculator

FAQ

Amazon Markup Calculator FAQ

Keep Exploring

Keep the calculator close, and connect the next guide.

Every page on markup calculator should take you back to the live calculator and the next related resource without making you hunt for it.

Open Home Calculator

Home Calculator

Jump back into the main calculator to run cost, markup, price, profit, and margin scenarios.

Markup vs Margin

Convert the two correctly and stop missing pricing targets.

Cost-Plus Pricing

Build price from true cost, fixed overhead, and target profit.

How to Price a Product

Use the full pricing workflow from true cost to market benchmark.