Calculate your true net profit after COGS, Amazon fees, PPC spend, and shipping. Know your exact margin and ROI before scaling any product.
Net Profit per unit = Selling Price − COGS − Referral Fee − FBA Fee − PPC Spend per unit − Other Costs. Use this calculator to see all costs itemised. The most commonly missed cost is PPC spend — divide your total monthly ad spend by units sold to get cost-per-unit.
A net margin of 20–30% after all costs (including PPC) is healthy for most Amazon India categories. Below 15% is risky — small fee increases or a bad PPC month can push you to break-even. Above 30% gives strong headroom for growth investment. Electronics and fast-fashion categories often have lower margins (8–15%); private label beauty and home products can reach 30–45%.
Margin % = Net Profit ÷ Revenue. ROI % = Net Profit ÷ Investment (COGS + fees + PPC). A product with ₹200 net profit on ₹999 selling price has a 20% margin. If COGS + fees = ₹700, ROI = 200/700 = 28.6%. ROI matters more for capital allocation — it tells you how hard your rupees work per inventory cycle.
Amazon India referral fees vary by category: Electronics 8%, Clothing 15%, Books 5%, Home & Kitchen 9%, Sports 9%, Health & Personal Care 10%, Beauty 10%. Use Amazon's official fee schedule for your exact category, or enter the rate from your Seller Central payment report.
Break-even units = Fixed Monthly Costs ÷ Net Profit per Unit. If you spend ₹20,000/month on fixed costs (agency, tools, storage) and make ₹200 net profit per unit, you need to sell 100 units to break even. Every unit beyond that is pure profit.