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Amazon FBA Profit Calculator

True landed cost, ROI, net margin & break-even ACoS — all in real time.

How to Calculate True Landed Cost & Amazon FBA Profit

The true landed cost is every dollar you spend getting a unit from your supplier to a customer's door — including import duties and Amazon platform fees. Many sellers only count COGS + FBA fee, which leads to inflated profit projections.

Customs Duty Amount

(COGS + Shipping) × Duty Rate %

Applied on the CIF (Cost + Insurance + Freight) value.

Amazon Referral Fee

Selling Price × Referral Rate %

Charged on every sale; 15% is standard for most categories.

True Landed Cost

COGS + Shipping + Customs + FBA Fee + Referral Fee

The all-in cost before advertising.

Net Profit

Selling Price − Landed Cost − PPC Ad Spend

Profit remaining after every cost including ads.

Net Profit Margin

(Net Profit ÷ Selling Price) × 100

Percentage of revenue kept as profit. Aim for ≥ 20%.

ROI

(Net Profit ÷ Invested Capital) × 100

Return on the capital tied up in inventory. Aim for ≥ 50%.

Break-Even ACoS

(Selling Price − Landed Cost) ÷ Selling Price × 100

Maximum ad spend as % of revenue before ads turn the product unprofitable.

Real-World Example: Sourcing a $5 Product from China to Amazon US

This example uses the calculator's default values. A common scenario for a private-label product sourced from Alibaba.

Cost Component Amount % of Sale
Selling Price on Amazon $35.00 100%
COGS (supplier cost) $5.00 14.3%
Air freight per unit $3.00 8.6%
Customs duty (12% of $8) $0.96 2.7%
Amazon referral fee (15%) $5.25 15.0%
FBA fulfillment fee $3.22 9.2%
PPC ad spend $2.00 5.7%
True Landed Cost $19.43 55.5%
Net Profit $15.57 44.5%

In this example the break-even ACoS is 50.3% — meaning you can spend up to 50.3% of revenue on PPC before the product becomes unprofitable. A typical target ACoS is 20–35%.

Frequently Asked Questions

What is a good profit margin for Amazon FBA?
Most successful FBA sellers target 20–35% net margin after all fees, COGS, shipping, and advertising. Below 10% is considered risky — a price drop, fee increase, or ad cost spike can quickly wipe out thin margins. Always calculate using true landed cost, not just COGS vs. selling price.
How do customs duties affect landed cost?
Customs duties are calculated as a percentage of the CIF (Cost + Insurance + Freight) value. For example, a 12% duty on a $5 product with $3 shipping adds $0.96 per unit. US Section 301 tariffs on Chinese goods can be 7.5%–25%+, dramatically increasing landed cost. Always verify your HTS code before sourcing.
What is break-even ACoS and how do I use it?
Break-even ACoS is the maximum percentage of ad revenue you can spend before ads stop being profitable. If your break-even ACoS is 40% and you run ads at a 25% ACoS, you're profitable on ad sales. If your campaigns run at 50% ACoS, every ad sale loses money. Use this metric to set max bids in Amazon Seller Central.
What FBA fees should I expect?
FBA fees depend on product size and weight. Small standard items (under 1 lb) range from $3.06–$3.22. Large standard items are $3.22–$5.82+. Oversized items can exceed $10 per unit. Check the Amazon FBA fee schedule for your product's exact dimensions and weight tier, and update the fee field in this calculator accordingly.
Should I include Amazon referral fee in landed cost?
Yes, always. The referral fee is paid on every sale and directly reduces your effective revenue. Including it in your cost model gives you a more accurate picture of true profitability. At 15% on a $35 product, the referral fee alone is $5.25 — larger than the product's entire shipping and duty combined in this example.
Last reviewed: October 2024 Sources: Amazon FBA fee schedule· Amazon referral fee schedule FBA fees change regularly. Always verify current rates in Amazon Seller Central before making sourcing decisions.