Before listing a product on Amazon FBA, calculate your true profitability after all fees.
Amazon charges a referral fee (typically 15%) plus FBA fulfillment fees based on size and weight.
Most successful FBA sellers target at least 25–30% net margins and 50%+ ROI on product cost.
Reach for this calculator when you need to present a business metric to stakeholders. Accurate, consistently-defined figures command more credibility than estimates, particularly in financial discussions.
The most consequential business calculation error is excluding indirect costs from the calculation. Labour, overhead, and opportunity cost are frequently omitted when evaluating profitability, producing overstated margin figures.
A product manager calculates gross margin for a new product line: manufacturing cost £8.50, proposed retail price £24.99. The calculator returns a 66% gross margin — above the company's 60% threshold, confirming the pricing is viable before taking it to the finance team.
Typically 15% of the sale price, though it varies by category (8%–45%).
Most experts recommend 25–30% net margin minimum for sustainable FBA businesses.
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