An Amazon FBA profitability calculator will help you simulate changes (e.g., price, costs, PPC spend) and determine the minimum price you need to charge to cover your costs.
Add a section below your main table or on a separate tab labeled Scenario Analysis.
| Variable | Original Value | Scenario 1 | Scenario 2 | Scenario 3 |
|---------------------|--------------------|----------------|----------------|----------------|
| Selling Price ($) | 30 | 28 | 35 | 25 |
| Product Cost ($) | 8 | 8 | 8 | 9 |
| FBA Fee ($) | 4.50 | 4.50 | 4.50 | 4.75 |
| Referral Fee (%) | 15% | 15% | 15% | 15% |
| PPC Cost ($) | 3 | 2.50 | 3.50 | 4 |
Link Selling Price in the main calculator to the corresponding cell in the scenario table:
excel
=ScenarioAnalysis!B2
Repeat for Product Cost, FBA Fee, Referral Fee, and PPC Cost.
Add formulas to calculate the following outputs for each scenario:
[ {Net Profit} = {Selling Price} - ({Product Cost} + {FBA Fee} + {Referral Fee} + {PPC Cost}) ]
[ {Profit Margin (\%)} = \frac{{Net Profit}} / {{Selling Price}} * 100 ]
[ {ROI (\%)} = \frac{{Net Profit}} / {{Product Cost}} * 100 ]
| Scenario | Net Profit ($) | Profit Margin (%) | ROI (%) |
|--------------|--------------------|-----------------------|-------------|
| Scenario 1 | $8.50 | 30.36% | 106.25% |
| Scenario 2 | $14.00 | 40.00% | 175.00% |
| Scenario 3 | $6.75 | 27.00% | 75.00% |
Create a Clustered Bar Chart or Table Chart:
- X-Axis: Scenarios (Scenario 1, Scenario 2, etc.).
- Y-Axis: Net Profit or Profit Margin.
To determine the breakeven price (minimum price to cover costs):
[ {Breakeven Price} = {Total Costs} ]
Where:
[
{Total Costs} = {Product Cost} + {FBA Fee} + {Referral Fee} + {PPC Cost}
]
Referral Fee is 15% of the Selling Price, so: [ {Referral Fee} = {Breakeven Price} * 0.15 ]
This makes the formula: [ {Breakeven Price} = \frac{{Product Cost} + {FBA Fee} + {PPC Cost}}{1 - {Referral Fee (\%)}} ]
[ {Breakeven Price} = \frac{8 + 4.50 + 3}{1 - 0.15} ] [ {Breakeven Price} = \frac{15.50}{0.85} = 18.24 ]
Your breakeven price is $18.24.
Add a column labeled Breakeven Price and enter the formula for automatic calculation:
Excel Formula for Breakeven Price:
excel
=(C2 + D2 + F2) / (1 - 0.15)
Where:
- C2 = Product Cost.
- D2 = FBA Fee.
- F2 = PPC Cost.
Add conditional formatting:
- Highlight rows where Selling Price < Breakeven Price in red.
- This flags products that are losing money.
| Product | Selling Price | Product Cost | FBA Fee | PPC Cost | Referral Fee | Total Costs | Net Profit | Profit Margin | ROI | Breakeven Price |
|---------------------|-------------------|------------------|-------------|--------------|------------------|-----------------|----------------|-------------------|---------|---------------------|
| Stainless Bottle | $30 | $8 | $4.50 | $3 | $4.50 | $20 | $10 | 33.33% | 125% | $18.24 |
| Yoga Mat | $25 | $6 | $4.00 | $2 | $3.75 | $15.75 | $9.25 | 37.00% | 154.17% | $18.53 |
| Phone Stand | $15 | $4 | $3.50 | $1.50 | $2.25 | $11.25 | $3.75 | 25.00% | 93.75% | $13.24 |