Amazon FBA looks simple on the surface. Buy low, sell high, let Amazon handle shipping. But between referral fees, FBA fees, storage fees, advertising costs, and returns, your actual profit margin can be a fraction of what you expected. An FBA profit calculator template reveals your true numbers before you commit to inventory.
New sellers commonly calculate profit as selling price minus product cost. They forget that Amazon takes 30-45% of the selling price in various fees. A product with a $15 selling price and a $5 cost does not yield $10 profit. After Amazon's fees, you might net $2-$3. Without a calculator, you discover this after buying 1,000 units.
**Revenue**
**Amazon Fees**
**Product Costs**
**Advertising Costs**
**Returns and Losses**
**Other Costs**
**Profit per Unit:** Selling price minus all fees and costs. This is your real margin.
**ROI (Return on Investment):** Profit divided by total cost per unit. Target 100%+ ROI, meaning you double your money on each unit.
**Break-Even Units:** Fixed monthly costs divided by profit per unit. How many units you need to sell before you start making money.
**Inventory Turnover:** How many times per year your inventory sells through. Faster turnover means less storage fees and better cash flow.
A reliable shorthand: your selling price should be at least 3x your landed product cost. If your product costs $5 to source and ship to Amazon, you need to sell it for $15 or more to maintain healthy margins after all fees. Below 3x, you are likely losing money once advertising is factored in.
Get a professional Amazon FBA profit calculator template with fee modeling, ROI analysis, and break-even calculations at [our catalog](https://kincaidandle.com/catalog). Also at [our Gumroad store](https://lunamaile.gumroad.com).
Know your margins. Protect your capital. Sell smarter on Amazon.
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*Kincaid and Le Companies LLC*