Amazon Profit Calculator

How to Use the Amazon Profit Calculator

1. Pick the product category, the marketplace and the selling price.
2. Choose FBA (Fulfilled by Amazon) or FBM (Fulfilled by Merchant).
3. For FBA, enter the fulfilment network, the weight and the dimensions. Then enter what it costs you to ship one unit to Amazon, and your estimated storage fee per unit.
4. For FBM, enter what it costs you to ship one unit to the customer, packaging included.
5. Enter your cost of goods (COGS) per unit.
6. Click Calculate Profit.

The results show every Amazon fee, your net receipts, your profit per unit before advertising and your break-even ACoS. Click Download PDF to save a copy of the inputs and the results.

How the Calculator Works Out Your Profit

The calculator starts with the price the customer pays and takes off each cost in turn.

FBA profit = selling price - VAT - referral fee - FBA fulfilment fee - shipping to Amazon - storage fee - COGS

FBM profit = selling price - VAT - referral fee - shipping to the customer - COGS

• VAT comes out at the rate of the marketplace you sell in, for example 20% in the UK and 19% in Germany.
• The referral fee depends on the category and the price. Some categories charge a different rate above a price threshold, and the calculator applies it.
• The FBA fulfilment fee comes from the size tier and the shipping weight. Amazon charges on the greater of the actual weight and the dimensional weight, so a large, light product can cost more than its weight suggests.

The calculator leaves out returns, removal and disposal fees, and optional services. It also leaves out advertising, because break-even ACoS shows how much of each sale you can spend on ads.

FBA or FBM: Compare Both

Run the same product twice, once as FBA and once as FBM. The difference in profit per unit shows what Amazon’s fulfilment costs you, or saves you.

FBA adds the fulfilment fee, the cost to ship stock to Amazon and storage. FBM swaps those for the cost to pack and post each order yourself. FBM profit here does not include your own time, your warehouse or your returns handling, so add a margin for those before you compare.

For a full list of what Amazon charges, read Amazon Fees Explained.

What Break-even ACoS Tells You

ACoS is your ad spend divided by your ad sales. Break-even ACoS is the ACoS at which an ad sale makes no profit and no loss: your profit per unit before advertising, divided by the selling price.

Take a product that sells for 29.99 and makes 9.01 before advertising. Its break-even ACoS is 9.01 / 29.99 = 30.0%.

• At an ACoS below 30%, each ad sale makes money.
• At an ACoS above 30%, each ad sale on its own loses money.

The calculator divides by the selling price including VAT, the same price your Amazon ad reports use for sales. That keeps the number comparable with the ACoS in your campaigns.

Break-even ACoS is a reference point, not a bid rule. Judge advertising by what it does to the product’s total profit. If ad spend goes up and the product’s daily profit goes up with it, the ads pay their way, even when the ad sales alone run at a small loss.

Each product has its own break-even ACoS. Put products with different margins in different ad groups, so each one gets a bid that fits it. To set a target, read What Is a Good ACoS on Amazon? and ACoS vs TACoS. To check the ACoS of a campaign, use the ACoS calculator.

Frequently Asked Questions