Amazon Seller Tools
Amazon Product Cost Calculator
Estimate the true cost of an Amazon product after sourcing, inbound shipping, prep, packaging, inspection, defect allowance, Amazon fees, fulfillment costs, PPC, refunds, storage, and other selling costs.
Product cost inputs
Enter sale price, product cost, landed cost details, Amazon fees, fulfillment cost, PPC, refunds, and monthly order volume.
Revenue
Landed product cost
Amazon and selling costs
Results
Estimated true product cost and profit.
Estimated profit
$5.00
Sale price minus true product cost, Amazon costs, PPC, and refunds
Profit margin
14.3%
Estimated profit divided by sale price
True product cost
$15.50
Product cost plus inbound, prep, packaging, inspection, and defect allowance
Total cost
$30.00
True product cost plus Amazon and selling costs
Amazon costs
$11.00
Referral fee, fulfillment cost, and storage cost
Selling costs
$3.50
PPC, refund allowance, and other costs
Referral fee
$5.25
Sale price multiplied by referral fee rate
ROI on true product cost
32.3%
Estimated profit divided by true product cost
Cost share
85.7%
Total cost divided by sale price
Break-even price
$29.12
Approximate sale price needed before profit starts
20% margin price
$38.08
Approximate sale price needed for a 20% margin
30% margin price
$45.00
Approximate sale price needed for a 30% margin
Monthly profit
$500.00
Estimated profit multiplied by monthly orders
Monthly revenue
$3,500.00
Sale price multiplied by monthly orders
Monthly total cost
$3,000.00
Total cost multiplied by monthly orders
Monthly product cost
$1,550.00
True product cost multiplied by monthly orders
What this means
This Amazon product is estimated to have a true product cost of $15.50 per unit before final profit is calculated.
At a sale price of $35.00, estimated profit is $5.00 with a margin of 14.3%.
The estimated break-even sale price is $29.12. Pricing below that level may lose money under these assumptions.
Price scenario comparison
| Price | Total cost | Profit | Margin | Status |
|---|---|---|---|---|
| $20.00 | $27.75 | -$7.75 | -38.8% | Losing |
| $30.00 | $29.25 | $0.75 | 2.5% | Thin |
| $40.00 | $30.75 | $9.25 | 23.1% | Strong |
| $50.00 | $32.25 | $17.75 | 35.5% | Strong |
| $60.00 | $33.75 | $26.25 | 43.8% | Strong |
How to use this Amazon Product Cost Calculator
Enter product cost
Add item cost, inbound shipping, prep, packaging, inspection, and waste allowance.
Add Amazon costs
Include referral fee, fulfillment cost, storage cost, and other Amazon-related costs.
Add selling costs
Include PPC, refunds, and any other cost that affects profit per order.
Review pricing
Compare profit, margin, break-even price, target margin prices, and monthly profit.
Product cost breakdown
Review which cost categories are taking up the largest share of the sale price.
Product cost
$12.00
40.0% of total cost
Inbound shipping
$1.50
5.0% of total cost
Prep / label cost
$0.75
2.5% of total cost
Packaging cost
$0.50
1.7% of total cost
Inspection cost
$0.25
0.8% of total cost
Defect allowance
$0.50
1.7% of total cost
Amazon costs
$11.00
36.7% of total cost
Selling costs
$3.50
11.7% of total cost
Common Amazon product cost mistakes
- ×Only using the supplier price as the product cost.
- ×Forgetting inbound shipping, prep, labels, packaging, inspection, or waste allowance.
- ×Ignoring Amazon referral fees, fulfillment fees, storage, PPC, and refunds.
- ×Pricing products before calculating break-even and target margin prices.
- ×Restocking inventory before checking whether true product cost still supports profit.
- ×Using the same cost assumptions after supplier, shipping, or fee changes.
Understanding your product cost result
Strong: The product appears to have enough margin after true product cost and selling costs.
Healthy: The product appears workable, but Amazon fees, PPC, refunds, and storage should still be reviewed.
Thin Margin: The product may be vulnerable to fee changes, refund issues, PPC cost, or sourcing increases.
Losing Money: The product may not cover its full cost structure under the entered assumptions.
What Amazon sellers should include
- ✓Supplier price, product cost, and landed cost.
- ✓Inbound shipping, prep, labeling, packaging, inspection, and samples.
- ✓Defect allowance, waste allowance, damaged units, and unsellable inventory.
- ✓Amazon referral fees, fulfillment fees, storage costs, and category-specific costs.
- ✓PPC, coupon cost, refund allowance, return cost, and customer issue risk.
- ✓Break-even price, target margin price, monthly orders, and cash flow.
Ways to improve Amazon product cost
Reduce sourcing cost
Negotiate supplier pricing, compare vendors, or improve order planning.
Reduce landed cost
Review inbound shipping, prep, packaging, inspection, and waste allowance.
Reduce selling costs
Improve PPC efficiency, refund prevention, storage planning, and fulfillment choices.
Raise price carefully
Increase price when the market supports it and the product needs more margin.