Amazon Profit Calculator

Amazon profit is what's left of your sales after everything selling on Amazon costs. Revenue is easy to see in Seller Central. Profit isn't, because the costs are spread across fee reports, invoices and ad consoles.

It helps to split it in two. Profit per unit before ads is what one sale leaves after the product, Amazon's fees and other per-unit costs. Net profit per month takes that, times units sold, and subtracts ads and fixed costs. The first tells you whether the product works. The second tells you whether the business does.

referral fee       = price × referral rate
unit profit        = price − product cost − referral fee − FBA fee − other
margin before ads  = unit profit ÷ price
profit before ads  = unit profit × units
net profit         = profit before ads − ad spend − fixed costs
TACoS              = ad spend ÷ (price × units)

• Referral fee: Amazon's commission, a percent of the whole price set by category. The Amazon referral fees guide lists every category's rate.
• FBA fee: picking, packing and shipping one unit, set by size and weight. The FBA fee calculator works it out from your dimensions.
• Other per-unit costs: inbound shipping, storage, returns and prep. Add up a month of them and divide by units sold.
• Ad spend: Amazon Ads plus any Meta or other ads that send shoppers to this product on Amazon.

A made-up supplement tub. These are the calculator's example values.

1. Referral fee: $29.99 × 15% = $4.50. With the $4.80 FBA fee, Amazon takes $9.30 a unit.
2. Unit profit: $29.99 − $6.50 − $9.30 − $1.10 = $13.09, or 43.7% of the price.
3. A month of 600 units: $17,994 of revenue and $7,854.90 of profit before ads.
4. Minus $3,000 of ads and $100 of fixed costs: net profit is $4,754.90, a 26.4% net margin.

Ads cost 16.7% of revenue here, well under the 43.7% the product keeps before ads. At this unit profit, the month covers its ads and fixed costs after 237 units.

There's no single right number, because it depends on your category, price and how much you reinvest in ads. What you can check is whether the pieces fit together:

• Margin before ads sets your ceiling. It's your break-even ACoS and TACoS: ads can't cost more than this share of revenue without the month losing money.
• TACoS well under that margin leaves room for profit, or for more ads if they're causing sales.
• Net profit per unit is what each sale really earns you after everything. Low-priced products feel this most, since the FBA fee is a bigger share of a small price.

Compare your numbers with your own past months. The ACoS calculator checks a campaign against the same break-even.

• Using price minus product cost as profit. In the example, Amazon's fees take $9.30 of a $29.99 price before anything else.
• Forgetting the small per-unit costs. Inbound shipping, storage and returns are easy to miss and add up across a month.
• Leaving Meta spend out. If Meta ads send shoppers to Amazon, they're part of what those sales cost.
• Using an old FBA fee. Amazon changes its rates, and peak-season fees run higher. Check the current fee for your size tier.
• Counting all sales as ad-driven. Profit after ads tells you what the month earned, not what the ads earned.

This calculator takes ad spend as a cost, which is right for the month's profit. It can't tell you whether cutting that spend would raise profit or lower it, because that depends on how many sales the ads cause.

To find out, pause ads somewhere and compare. The holdout test calculator shows how big a test you'd need, and the contribution margin calculator compares profit per order on Amazon and your own site.