Amazon ROI Calculator: How to Decide Whether a Product Is Worth the Cash

Amazon ROI is a cash decision. It tells sellers how much profit a product may generate compared with the money tied up in inventory. This matters because even profitable products can be poor decisions if they use too much cash for too little return.

An Amazon ROI calculator helps sellers compare products on capital efficiency, not just revenue or unit profit.

How to calculate Amazon ROI

A common formula is net profit divided by landed cost, multiplied by 100. Landed cost should include product cost, prep, inbound shipping, and other costs required before the unit can sell. Net profit should be after marketplace fees, fulfillment fees, PPC, and refund reserve.

ROI targets depend on strategy

A seller focused on fast turns may accept a different ROI than a seller buying slower-moving inventory. The right target depends on cash flow, risk, competition, and replenishment speed.

Use ROI with margin

Open the FBA ROI Calculator to compare ROI, margin, unit profit, and landed cost together. Strong decisions usually require all four numbers to make sense.