How to use this calculator
Enter total unit cost before referral fee, Amazon fee rate, target margin, and ad cost per order. The calculator estimates the selling price required to achieve the target margin.
Use this calculator to set an Amazon price that supports your target margin instead of guessing from competitor prices alone.
Enter total unit cost before referral fee, Amazon fee rate, target margin, and ad cost per order. The calculator estimates the selling price required to achieve the target margin.
The recommended price shows what you need to charge to reach your margin goal. If it is far above the market price, the product may need better cost structure or positioning.
The formula assumes fee rate is based on selling price. Add exact FBA and storage fees into total cost for better accuracy.
If total cost is $30, referral fee is 15%, target margin is 25%, and ad cost is $5, recommended price is $58.33.
Start with all unit costs, Amazon fee rate, ad cost, and target margin. Then calculate the price needed to preserve that margin.
Add product, fulfillment, shipping, ad, and other costs, then divide by one minus your target margin and fee percentage.
Because referral fees are usually a percentage of selling price, higher fees require a higher price to keep the same net margin.
Only lower price if the additional sales volume still produces acceptable margin and does not start a race to the bottom.
Improve sourcing, reduce fulfillment cost, build stronger value perception, test coupons, and monitor competitor price bands while protecting margin.
| Metric | Meaning |
|---|---|
| Recommended price | Selling price needed for target margin. |
| Break-even price | Price where profit is approximately zero before target margin. |
| Target margin | Desired net margin after costs and percentage fee. |
| Health score | Score based on margin feasibility and price pressure. |