What is Amazon FBA?
Fulfillment by Amazon (FBA) is a service where you send inventory to Amazon's warehouses and Amazon handles storage, packing, shipping, and customer service for your orders. In return, Amazon charges fees that come out of every sale. This calculator estimates those fees and shows your net profit per unit so you can decide whether a product is worth selling before you commit inventory.
The main FBA fees
- Referral fee: Amazon's commission on each sale, usually around 8% to 15% of the selling price depending on category (15% is the most common).
- Fulfillment fee: a per-unit charge for picking, packing, and shipping, based mainly on the item's size and weight.
- Storage fee: a monthly charge for the warehouse space your inventory occupies, higher in the busy fourth quarter.
How to calculate FBA profit
Net profit per unit is your selling price minus the cost of the product, minus all Amazon fees, minus inbound shipping to Amazon. The calculator above adds it up for you and also shows your margin, ROI, break-even price, and a simple verdict. Watching the break-even figure is key, because it tells you the lowest price you can accept before a sale starts losing money.
What is a good FBA margin?
Many sellers aim for a net margin around 15% to 30% and an ROI of 50% or more on product cost, to leave room for advertising, returns, and price competition. Thin margins are fragile: a small fee increase or a price war can wipe them out. Use conservative numbers so a product still works when conditions are less than ideal.
Fee estimates are approximate; check current rates in Seller Central. This tool is for general guidance, not financial advice.
Last updated: July 2026