What the calculator checks
The calculator separates revenue from the costs that usually decide whether an Amazon FBA product is worth testing: product cost, first-leg freight, FBA delivery fee, referral fee, daily ad budget, CPC, conversion rate, and exchange rate. Seeing those inputs together helps you avoid a common mistake: looking only at selling price while ignoring traffic cost and cash tied up in inventory.
Use the result as a first-pass filter. If the unit margin is thin before advertising, the product will usually need strong organic ranking, repeat purchases, or unusually low return rates to survive. If the break-even price is too close to the planned selling price, you have very little room for coupons, price wars, storage fees, or damaged units.
Recommended workflow before sourcing
- Enter your realistic landed product cost, not only the factory quote.
- Use the correct referral fee rate for the product category.
- Estimate FBA delivery fee from the actual size tier and weight.
- Test conservative ad assumptions first: higher CPC and lower conversion rate.
- Compare unit profit, ACOS, monthly profit, and ROI together instead of relying on one number.
Numbers that deserve extra attention
Break-even price tells you the lowest price that covers product cost, freight, FBA fee, and referral fee before advertising. Expected ACOS shows how expensive your paid orders may be under the CPC and conversion rate you entered. ROI after ads is often more useful than pure margin because many new listings rely on paid traffic during launch.
Common mistakes
- Using the supplier quote without packaging, inspection, domestic delivery, or first-leg freight.
- Rounding FBA fees too aggressively when a small product has tight margins.
- Assuming the launch CPC will stay low in a competitive category.
- Ignoring exchange-rate movement when costs are paid in RMB and revenue is received in USD.
- Comparing competitors by price only instead of checking size, bundle count, reviews, and ad intensity.
Next step
Run the numbers in the Amazon FBA Profit Calculator, then use the FBA restock planning guide to check whether the product also has manageable cash-flow and supply-chain timing.