Amazon Dropshipping Calculator – Estimate Profit & Fees Accurately

When you’re running a dropshipping business on Amazon, numbers decide everything. You may find a winning product, but if your costs, fees, and taxes eat up the margin, you’ll end up with little or no profit. That’s where the Amazon Dropshipping Calculator comes in. With just a few inputs — product cost, shipping, Amazon fees, selling price, other expenses, and taxes — you’ll instantly know whether your item is worth selling or if you should move on to another product.

This tool saves time, prevents costly mistakes, and helps you make smarter business decisions before you spend money on stock, ads, or listings.

Why This Calculator is Important

Dropshipping on Amazon can be profitable, but the platform has strict fees and policies. Many beginners overlook hidden costs like referral fees, FBA charges (if used), or shipping. This calculator puts everything in one place. Instead of guessing, you’ll know exactly:

• Your net profit after all expenses.
  
• Your profit margin percentage.
  
• How much tax will reduce your earnings.
  
• Whether the product is worth scaling.
  

In short, it takes the guesswork out of pricing and shows you whether your effort will be rewarded.

What Each Input Means

• Product Cost ($): The price you pay your supplier for one unit.
  
• Shipping Cost ($): What it costs to get the product from supplier to customer (or to Amazon warehouse if FBA).
  
• Amazon Fees (%): Amazon usually charges a referral fee (8–15%) depending on category. Some sellers also add FBA fees here.
  
• Selling Price ($): The price you plan to list the product for on Amazon.
  
• Other Costs ($): Ads, packaging, virtual assistants, or any overhead per unit.
  
• Tax Rate (%): Percentage of profit that goes to taxes, depending on your country or region.
  

The Formula Behind the Calculator

The calculator uses a simple but powerful step-by-step approach:

1. Gross Revenue = Selling Price
   
2. Amazon Fee ($) = Selling Price × (Amazon Fee %)
   
3. Total Costs = Product Cost + Shipping Cost + Amazon Fee ($) + Other Costs
   
4. Profit Before Tax = Selling Price − Total Costs
   
5. Tax Amount = Profit Before Tax × (Tax Rate %)
   
6. Net Profit = Profit Before Tax − Tax Amount
   
7. Profit Margin (%) = (Net Profit ÷ Selling Price) × 100
   

Step-by-Step Example

Let’s say you want to sell a gadget on Amazon:

• Product Cost = $12
  
• Shipping Cost = $3
  
• Amazon Fees = 15%
  
• Selling Price = $30
  
• Other Costs = $2
  
• Tax Rate = 20%
  

Step 1: Amazon Fee = $30 × 15% = $4.50
Step 2: Total Costs = $12 + $3 + $4.50 + $2 = $21.50
Step 3: Profit Before Tax = $30 − $21.50 = $8.50
Step 4: Tax = $8.50 × 20% = $1.70
Step 5: Net Profit = $8.50 − $1.70 = $6.80
Step 6: Profit Margin = ($6.80 ÷ $30) × 100 = 22.6%

👉 This means for every unit sold at $30, you keep $6.80 after all fees and taxes.