Amazon FBA Break-Even Price Calculator
Find the minimum selling price needed to hit your target profit margin on Amazon FBA. Enter your COGS, fees, and target margin % — the calculator reverse-solves for the exact price you need to charge.
How to Find Your Minimum Selling Price on Amazon
Most sellers calculate profit by starting with a price and working backwards. This calculator flips that — you start with your costs and desired margin, and it solves for the price you need. The math is more complex than simple addition because Amazon's referral fee is a percentage of your selling price. Raise the price, and the fee goes up too. This creates a circular dependency that requires algebraic rearrangement to solve correctly.
The formula: Target Price = Fixed Costs ÷ (1 − Referral Rate % − Target Margin %). Fixed costs include your COGS, FBA fulfillment fee, inbound shipping, and any storage estimate. The denominator accounts for both the percentage Amazon takes and the percentage you want to keep. If you want 20% margin with a 15% referral fee, Amazon and you together claim 35% of the price — meaning your fixed costs must represent just 65% of the final price.
Pricing Strategy for Amazon FBA
The break-even price (0% margin) is your absolute floor — the price below which you lose money on every sale. Your target price is the price you need to hit your desired margin after all costs. The gap between break-even and target price is your pricing buffer — it represents the per-unit profit you're building in.
Once you know your target price, compare it to what the market actually sells at. If the prevailing competitive price is above your target price, the product is viable. If it's below, you have a sourcing problem — you need to either reduce COGS (better supplier pricing, larger MOQ) or choose a different product.
Don't forget to factor in PPC (Amazon advertising) when setting your minimum price. If you plan to run ads at an estimated 10% ACoS, add that to your target margin. A product that needs to sell at $19.99 to hit 20% margin before ads should be priced at ~$21–$22 to maintain margin after advertising spend. Our PPC ACoS Calculator helps you model advertising impact on your break-even.
After finding your target price, plug it into the FBA Profit Calculator alongside your actual competitor price to confirm full-scenario profitability — including optional PPC, storage, and return rate inputs. Use the Landed Cost Calculator to make sure your COGS input here represents true all-in sourcing cost, not just the supplier's FOB price.
Frequently Asked Questions
Why can't I just add up my costs to find a minimum price?▼
Because Amazon's referral fee is a percentage of your selling price. If you raise your price, the referral fee goes up too. This circular dependency means simple addition understates the required price. The correct approach is algebraic rearrangement, which this calculator performs automatically.
What target margin should I use?▼
Most FBA sellers use 20–25% as a minimum target margin. This leaves room for PPC (typically 5–15% of revenue), occasional returns, and fee increases. Use 20% as a floor and aim for 25%+ to remain profitable after advertising.
What is the difference between break-even price and target price?▼
Break-even price is the floor — the price at which you make zero profit after all costs. Target price builds in your desired margin on top of break-even. Always price at or above your target price; break-even is never a sustainable pricing strategy because it leaves no room for advertising or unexpected costs.
How should I use this with competitor research?▼
Find what your top competitors are selling at first. Then run this calculator to see what minimum price you need. If the market price exceeds your target price, the product is viable at your costs. If the market price is below your target price, you need to reduce COGS through better supplier negotiation or a larger order quantity.
Related Amazon FBA Calculators
- Amazon FBA Profit Calculator
- Amazon FBA Fee Calculator
- Amazon FBA Target Margin Calculator
- Amazon PPC ACoS Calculator
- Amazon FBA ROI Calculator
- Amazon FBA Landed Cost Calculator
See all tools on the Amazon FBA Calculators hub.
Powered by HumanCalculations — free online calculators