FBA ROI Calculator: How to Measure Return on Amazon Inventory

FBA ROI measures how efficiently a product turns invested cost into profit. It is one of the most important metrics for Amazon sellers because inventory ties up cash before the sale happens.

An FBA ROI calculator compares net profit to landed cost. Landed cost usually includes product cost, inbound shipping, prep, and other costs required to get the unit ready for sale.

ROI is different from margin

Margin is profit divided by selling price. ROI is profit divided by cost invested. A seller should watch both. Margin protects pricing quality, while ROI protects cash efficiency.

Include all deal costs

Do not calculate ROI from product cost alone. Include prep, inbound shipping, referral fee, FBA fee, PPC, refund reserve, and any other per-unit cost. A small missed cost can turn a good ROI into an average deal.

Check before buying

Use the FBA ROI Calculator to test a product before placing an order. If the ROI does not clear your target after realistic costs, the deal may not deserve the cash.