Amazon FBA Target Margin Calculator

What Margin Should Amazon FBA Products Have?

The industry standard minimum for viable FBA products is 20% net margin. At 20%, you have just enough room to run modest PPC advertising (5–10% ACoS) and absorb minor fee increases without going negative. Below 15%, most products become unsustainable once advertising costs are factored in — and advertising is essentially mandatory for new listings on Amazon.

Products with 25–30%+ margin are significantly more resilient. They can absorb higher PPC spend during competitive periods, seasonal fee increases (Q4 storage doubles), occasional return rate spikes, and price reductions needed to stay competitive. The margin threshold scorecard in this calculator shows you exactly which benchmarks your product hits or misses at a glance.

How This Calculator Auto-Calculates Amazon Fees

Rather than requiring you to look up fees separately, this calculator uses Amazon's published 2025/2026 referral fee schedule and FBA fulfillment fee tiers to compute them automatically from your category and weight tier selections. You select your product category (which determines the referral rate %) and the size/weight tier (which determines the fulfillment fee $), and the calculator handles the rest.

For more precise fee calculations — including exact dimensional weight, multi-tier fee structures, and weight-based fee lookup — use our dedicated Amazon FBA Fee Calculator. Then bring those exact figures into the FBA Profit Calculator for a complete analysis including PPC, return rate, and monthly projections.

Using Margin Thresholds During Product Research

The threshold scorecard is designed for fast product screening. When you're evaluating dozens of potential products, you don't need a full 10-field profit analysis on every one — you need a quick viability filter. If a product fails the 20% threshold, it's likely not worth pursuing unless you have a clear plan to reduce COGS.

For products that pass your margin threshold, move to a full evaluation with the Break-Even Price Calculator (to validate your pricing has competitive headroom) and the Landed Cost Calculator (to confirm your COGS includes freight, duty, and customs).

Frequently Asked Questions