Amazon profit calculator: FBA, FBM and dropshipping
The math behind Amazon's Revenue Calculator, extended to every marketplace. Compare FBA, your own fulfillment and dropshipping for the same product, with break-even and target-margin prices.
Product and sale details
Dropshipping (amazon.com → forwarder)
Dropshipping costs
Amazon Fulfillment (FBA)
Size tier: Large standard · fee weight 1.29 lb · incl. 3.5% fuel and logistics surcharge · Inbound placement: Official range $0.24–$0.50, the upper end is used
FBA settings
Your Fulfillment (FBM)
Most profitableFBM costs
These are estimates. The exact fee shows in the product's fee preview in Seller Central.
For price history, Buy Box and competition data, use the ASIN lookup. Last updated October 26, 2026. FBA fees checked against Seller Central help pages on that date.
How is Amazon profit calculated?
Net profit is what's left of the buyer's payment after VAT, Amazon fees, fulfillment, product cost, returns, ads and your share of fixed costs.
- Sales total = item price + shipping charged to the buyer. Outside the US you enter it in local currency and it's converted at the ECB reference rate.
- VAT = sales total − sales total ÷ (1 + VAT rate). In the UK and EU the VAT inside the price isn't yours; US and Canada prices exclude tax.
- Referral fee = sales total × category rate, never below the minimum. US media items also pay a $1.80 closing fee.
- FBA fulfillment fee = rate card lookup by size tier, fee weight and price band. Fee weight is the greater of unit weight and dimensional weight (L × W × H ÷ 139); small standard uses unit weight only.
- Storage per unit = monthly rate per cubic foot × unit volume × average units stored ÷ monthly units sold.
- Net profit = sales total − VAT − Amazon fees − tax on fees − fulfillment and storage − product cost − returns reserve − ads − fixed cost share.
- Net margin = net profit ÷ sales total. ROI = net profit ÷ (product cost + logistics you pay yourself).
- Break-even and target-margin prices: because FBA price bands and tiered referral fees make the formula piecewise, the tool narrows the price step by step until profit hits zero or your target margin.
FBA or FBM?
With FBA, Amazon stores, packs, ships and handles customer service for a fee. With FBM, you do that work and carry its cost.
| FBA (Amazon ships) | FBM (you ship) | |
|---|---|---|
| Fulfillment | Rate card by size, weight and price band | Your own carrier rates |
| Storage | Monthly per cubic foot; higher Oct–Dec | Your warehouse or a forwarder |
| Inbound | Placement fee (minimal splits) or free Amazon-optimized splits | None |
| Aged inventory | Surcharge from 181 days | None |
| Returns | Processing fee above the return-rate threshold | You absorb returns |
| Prime badge | Yes | Depends on Seller Fulfilled Prime |
2026 US FBA fees at a glance
- Since January 15, 2026, FBA fees split into three price bands: under $10, $10–$50 and over $50. Items at exactly $10 or $50 use the $10–$50 rates.
- Since April 17, 2026, a 3.5% fuel and logistics surcharge is added to fulfillment fees.
- Peak fulfillment fees apply from October 15, 2026 to January 14, 2027.
- Monthly storage for standard size is $0.78/cu ft in January–September and $2.40 in October–December; oversize is $0.56 and $1.40.
- Example: a 10 × 6 × 3 in, 1.2 lb item at $29.99 has a peak fulfillment fee of $5.93 with the surcharge. Amazon's Revenue Calculator shows the same amount.
The built-in rate card covers products other than apparel and dangerous goods. For apparel, dangerous goods and marketplaces outside the US, take the FBA fee from Seller Central and enter it.
VAT and tax on fees by marketplace
In Europe and the UK the price includes VAT and Amazon's fees carry tax on top. The tool fills these rates in when you pick a marketplace.
| Marketplace | Currency | VAT in price | Tax added to fees | Dropshipping forwarder + shipping (1 / 3 / 8 lb) |
|---|---|---|---|---|
| 🇺🇸 United States | USD | 0% | 0% | $8.20 · $9.60 · $13.10 |
| 🇬🇧 United Kingdom | GBP | 20% | 22.4% | $9.16 · $14.43 · $20.61 |
| 🇨🇦 Canada | CAD | 0% | 0% | $10.22 · $13.01 · $17.57 |
| 🇲🇽 Mexico | MXN | 0% | 0% | $10.93 · $12.95 · $17.05 |
| 🇩🇪 Germany | EUR | 19% | 18.9% | $16.13 · $23.67 · $30.38 |
| 🇫🇷 France | EUR | 20% | 23.6% | $16.13 · $23.67 · $30.38 |
| 🇮🇹 Italy | EUR | 22% | 25.7% | $16.13 · $23.67 · $30.38 |
| 🇪🇸 Spain | EUR | 21% | 24.6% | $16.13 · $23.67 · $30.38 |
| 🇯🇵 Japan | JPY | 10% | 10% | $17.50 · $24.50 · $42.00 |
Tax-on-fees and shipping defaults come from 6,115 orders across 27 stores we operate (Mexico and Canada last 90 days, UK and Germany last 180 days). France, Italy and Spain use the Germany values and Japan uses an estimate. In Canada, GST/HST is added on top of the price. Ask an accountant about your own tax position.
Related pages
- How Amazon dropshipping works
- Is Amazon dropshipping legal in 2026?
- Resale certificates and sales tax
- ASIN Orchestrator: product research with a profit filter
Sources
- Amazon: Selling on Amazon pricing (referral, closing and plan fees)
- Seller Central: 2026 US FBA fulfillment fee changes
- Seller Central: Product size tiers
- Seller Central: Monthly inventory storage fees
- Seller Central: Aged inventory surcharge
- Seller Central: FBA inbound placement service fee
- Seller Central: 2026 returns processing fee changes
- Amazon Revenue Calculator
- Amazon UK: Selling on Amazon pricing
Last updated October 26, 2026. FBA fees checked against Seller Central help pages on that date.