Amazon FBA ROI Calculator
Return on every dollar you put into inventory — per unit, per dollar, and annualized by how fast your stock turns. Free, no signup.
Return on investment (per unit)
Annualized = per-unit ROI × turns, ignoring compounding and restock lead time — a comparison yardstick, not a forecast.
How FBA ROI is calculated
Landed cost = supplier unit price + freight + prep & labeling
Net profit = sale price − landed cost − referral − fulfillment − storage − ads − returns
ROI = net profit ÷ landed cost
The denominator is what makes ROI the seller's number. Margin tells you how much of the customer's money you keep; ROI tells you what your own money earned. When you're deciding where to put the next $5,000 of inventory budget, ROI is the comparison that matters.
ROI vs. margin: same profit, different question
Both start from the same net profit. Margin divides it by the sale price; ROI divides it by your landed cost. With the default numbers above, a $3.91 profit is a 15.7% margin but a 60% ROI — one deal, two very different-sounding numbers. Neither is wrong; they answer different questions. Compare products with ROI, judge pricing health with margin.
What's a good FBA ROI?
Rules of thumb, not laws: retail-arbitrage and wholesale sellers often demand 100%+ per unit, because their capital cycles quickly and each deal is short-lived. Private-label sellers commonly accept 30–60%, trading a lower per-unit return for volume and durability. The tiebreaker is speed — which is why this calculator annualizes: a 40% ROI turned 6 times a year (~240% simple annual return) beats a 100% ROI turned once. Enter your own turns and let the numbers argue.
Frequently asked questions
How do you calculate ROI for Amazon FBA?
ROI = net profit ÷ landed cost. Landed cost is everything paid to get one sellable unit into Amazon's warehouse: supplier price, freight, prep. Net profit is the sale price minus landed cost and all selling costs.
What is a good ROI for Amazon FBA?
Arbitrage and wholesale sellers often target 100%+; private label commonly runs 30–60%. The honest answer depends on turns — see above.
What is the difference between ROI and profit margin?
Same numerator, different denominator: margin is profit ÷ price, ROI is profit ÷ landed cost. The profit calculator shows both side by side.
Why does annualized ROI matter more than per-unit ROI?
Per-unit ROI ignores time. Multiply by inventory turns to compare products fairly — and to compare Amazon against any other use of the money.