The ROI Calculator helps you understand return on investment for your Amazon FBA products. This guide shows you how to use it effectively to make smart investment decisions.

What is ROI?

ROI (Return on Investment) measures how much profit you make relative to your total investment. It's calculated as (Profit / Total Investment) × 100%.

Step 1: Enter Investment Details

• Initial Investment: Total capital invested (inventory cost, shipping, etc.)
• Product Cost: Cost per unit
• Quantity: Number of units purchased

Step 2: Enter Sales Information

• Selling Price: Price per unit on Amazon
• Monthly Sales: Expected units sold per month
• Marketplace & Category: Affects fees

Step 3: Add Costs

• Amazon Fees: Referral, FBA, storage fees
• Advertising: PPC costs
• Other Costs: Returns, packaging, etc.

Understanding Results

ROI Percentage

Shows return on investment. Higher is better. Aim for 20-50% or higher.

Profit Margin

Profit as percentage of revenue. Different from ROI - focuses on operational efficiency.

Payback Period

Time to recover initial investment. Lower is better.

Best Practices

• Aim for ROI of 20-50% or higher
• Consider both ROI and profit margin
• Account for all costs in calculations
• Compare ROI across different products
• Re-calculate as costs change