How Amazon profit is calculated
Amazon profit per item is the item price minus Amazon’s referral fee, fulfillment cost, your landed product cost, and any ad or other costs you assign to the sale.
Formula
Profit = Price − Referral fee − Closing fee − Plan fee − Fulfillment − Storage − Inbound and prep − Landed cost − Ads − Other
Margin = Profit ÷ Revenue · ROI = Profit ÷ Landed cost
- Estimated profit: revenue excluding sales tax minus referral fees, closing fees, allocated selling-plan fees, landed product cost, fulfillment, storage, inbound and prep, ads, and other entered costs.
- Profit margin: profit divided by that scenario’s revenue.
- ROI on landed cost: profit divided by landed product cost. Unavailable at zero cost.
- Break-even price: the lowest cent-level item price, up to $1 million, that covers entered costs. It holds buyer shipping, ad dollars, fulfillment costs, the referral rate and minimum, and plan allocation constant. It is unavailable in actual-referral mode, because a known fee cannot predict a future price.
These are per-item planning estimates, not net accounting profit or a bank payout. For gross margin and markup before selling costs, use the margin and markup calculator.
Worked example: a $30 Home & Kitchen item
Inputs: $10 landed cost, $2 ads, no buyer shipping, a $4.50 referral fee, and the Professional plan spread across 100 monthly units ($0.40 per item after rounding up). FBA uses $5 fulfillment, $0.30 storage, and $0.70 inbound and prep. FBM uses $6 postage, $0.50 packaging, and no storage.
| Line item | FBA | FBM |
|---|---|---|
| Item price | $30.00 | $30.00 |
| Referral fee (15%) and plan allocation | −$4.90 | −$4.90 |
| Fulfillment, storage, inbound and prep | −$6.00 | −$6.50 |
| Landed product cost and ads | −$12.00 | −$12.00 |
| Profit per item | $7.10 | $6.60 |
| Margin · ROI on landed cost | 23.7% · 71% | 22% · 66% |
FBA leaves $0.50 more under these assumptions. Fulfillment amounts are examples, not Amazon quotes. Delivery, demand, eligibility, and your workload also matter.
Which costs to enter
Use landed product cost for your purchase cost and the inbound freight already assigned to the item. You can prepare it with the landed cost calculator. Keep Amazon-specific inbound shipping and prep in the FBA field, so you do not enter the same expense twice.
FBA fulfillment amounts should come from Amazon’s current product estimate and include relevant surcharges. Allocate storage to each unit sold. For FBM, include postage, packaging, and any storage cost. Enter shipping or gift-wrap revenue only when you receive it, excluding sales tax.
Advertising and other costs are dollar amounts per sale. Use the other-costs field for charges you want to include, such as a return allowance. To plan ad spend, use the break-even ROAS calculator.
Named referral presets cover Home and Kitchen, Computers, and the listed Media categories only. A custom flat rate needs a confirmed rate, minimum, and closing fee. For tiered rates or fee adjustments, enter the actual referral fee for each scenario. The Professional subscription allocation rounds $39.99 a month up to the next cent per item across your expected monthly units. It is a planning allocation, not an exact monthly reconciliation.
Questions sellers ask
Is FBA or FBM more profitable?
It depends on your product. FBA adds Amazon fulfillment, storage, and inbound costs. FBM adds your own postage, packaging, and storage. Enter both sets of costs above to compare them for one item. Delivery speed, eligibility, and your own workload also matter.
Why is my Amazon payout different from this estimate?
This tool estimates one item. A settlement combines many orders, refunds, fees, and adjustments from different dates. Use your settlement reports and inventory records to reconcile a deposit.
Does this include sales tax or income tax?
No. Revenue excludes sales tax, and there is no sales tax input. Income tax, refunds, inventory write-offs, and overhead you do not enter are not included.
Where do I find my FBA fulfillment fee?
Use Amazon’s Revenue Calculator for your product. It applies the size tier and current fees. This tool does not look up ASIN or dimensional fees.
Sources and method
Fee presets were checked on October 14, 2026. Use Amazon’s official pricing for current category and plan fees, and its Revenue Calculator for product-specific fulfillment estimates. Amazon’s calculator guide explains which costs to enter. Product size, program, date, and seller circumstances can change FBA charges. This tool does not fetch product data, determine dimensions, apply fee waivers, or replace the official estimator.
A per-item estimate and an Amazon settlement answer different questions. Read our Amazon seller accounting guide, or review the Amazon workflows for QuickBooks, Xero, and Wave.