This Amazon profit calculator tells you what one unit actually leaves you with after Amazon’s fees, VAT, advertising and returns. Enter your selling price, landed cost and fees, and it gives you profit per unit, margin and ROI. It’s built for UK sellers, so it handles VAT on both sides: in your price and on Amazon’s fees.
How is Amazon profit calculated for UK sellers?
Profit per unit is your net revenue minus everything it cost to land, sell, advertise and occasionally take back that unit. For a VAT-registered seller, net revenue is the price without VAT, because the VAT belongs to HMRC. Costs are counted without VAT too, because you reclaim it. For a seller who isn’t registered, the reverse applies on both lines.
Get that VAT split wrong and the answer moves by more than £2 a unit on a £25 product (see the example below).
What fees does the calculator include?
It includes the per-unit charges that change your margin: referral fee, FBA fulfilment, storage, the digital services fee and refunds. As of September 2026:
| Fee | How it’s charged (UK store) | Where to find your figure |
|---|---|---|
| Amazon referral fee | 15% in most categories, charged on the total sales price; £0.25 minimum in most categories | Seller Central rate card |
| Tiered referral fees | Clothing 5% to £15, 10% to £20; Home Products 8% to £20; Pet, Grocery and Vitamins 5% to £10 (cuts effective 15 Dec 2025 and 5 Jan 2026) | 2026 European fee update |
| FBA fulfilment fee | By size tier and weight; average parcel cut of £0.26 from 15 Dec 2025; 1.5% fuel surcharge on fulfilment fees since 17 April 2026 | 2026 FBA fee changes |
| Storage | Per cubic foot per month, higher in Oct–Dec | Your storage fee report |
| Digital services fee | Typically 2% of UK Selling on Amazon fees for UK-established sellers | Your fee invoices |
| Refund administration | Lesser of £5.00 or 20% of the referral fee, per refund | Settlement report |
The full UK breakdown lives in our Amazon seller fees UK guide. Two practical points on the Amazon referral fee: sellers on Amazon’s forums report it’s worked out on the VAT-inclusive price, and the 2026 cuts only apply below the category thresholds. Enter your FBA fee including the fuel surcharge.
Why does VAT matter so much here?
Since 1 August 2024, UK-established sellers are invoiced by Amazon EU S.à r.l.’s UK branch, which charges 20% VAT on selling and FBA fees. Before that, fees were billed from Luxembourg under the reverse charge.
- VAT registered (standard scheme): you reclaim that 20%, so the fee’s real cost is the ex-VAT figure. But you also owe VAT out of your selling price.
- Not VAT registered, or on the Flat Rate Scheme: you can’t reclaim it, so every Amazon fee costs you 1.2× the rate card. Amazon Ads works the same way if no valid VAT number is on the account.
This is the main difference from Amazon’s own Revenue Calculator. Amazon’s tool is good for fee estimates on a specific ASIN, including the fuel surcharge, and it lists VAT among its costs. It doesn’t take your ad spend or your returns, and it doesn’t ask whether you can reclaim the VAT on its fees. Use Amazon’s for fee figures, then bring them here.
Worked example (illustrative)
A made-up product, not client data: £24.99 inc VAT, COGS £5.50, inbound £0.60, 15% referral fee, £3.20 FBA fee, £0.15 storage, £2.50 ad spend per unit, 4% returns (all unsellable), 2% digital services fee.
| Line | VAT registered | Not registered |
|---|---|---|
| Net revenue | £20.83 | £24.99 |
| COGS + inbound | −£6.10 | −£6.10 |
| Amazon fees (referral £3.75, FBA, storage, DSF) | −£7.24 | −£8.68 |
| Ads | −£2.50 | −£3.00 |
| Returns allowance | −£0.40 | −£0.43 |
| Profit per unit | £4.59 | £6.77 |
| Margin | 22.0% | 27.1% |
| ROI | 75.2% | 111.0% |
Same product, same price, £2.18 apart. Unregistered, you keep the whole price but pay VAT on every fee. Registered, a sixth of the price goes to HMRC, and many sellers find their pricing stops working.
How to read your Amazon profit calculator result
Treat these bands as working heuristics from our own account reviews, not Amazon rules.
| Margin (after ads) | What we’d read into it |
|---|---|
| Below 0% | Losing money per unit. Check ads first, then price. |
| 0–10% | One fee rise or a bad Q4 storage month wipes it out. |
| 10–20% | Workable, with little room for ad-led growth. |
| 20%+ | Room to fund launches and defend rank. |
For ROI, under roughly 50% ties up a lot of cash for the return. Then check pre-ad profit: that’s your break-even ACoS, and it caps what your ads can cost.
FAQ
What is an Amazon profit calculator?
A tool that takes a product’s selling price and subtracts every per-unit cost (product cost, shipping to Amazon, referral fee, FBA fee, storage, advertising, returns) to show what’s left. A useful one for UK sellers also handles VAT on the sale price and on Amazon’s fees.
Is this the same as an Amazon FBA calculator?
Close. An Amazon FBA calculator usually estimates Amazon’s fees for one product. This calculator uses those fees, then adds your ad spend, returns and VAT position to get profit, margin and ROI. Take your fee inputs from Amazon’s Revenue Calculator or your settlement reports.
What are the Amazon FBA fees in the UK?
As of September 2026, the main per-unit fees are the referral fee (15% in most categories, £0.25 minimum), the FBA fulfilment fee by size tier and weight plus a 1.5% fuel surcharge, monthly storage, and a 2% digital services fee on selling fees. UK-established sellers also pay 20% VAT on these fees.
How much is the Amazon referral fee in the UK?
It’s 15% of the total sales price in most categories, with a £0.25 minimum. Several categories have lower rates below a price threshold, cut in 2026: Clothing 5% up to £15, Home Products 8% up to £20, Pet Food, Grocery and Vitamins 5% up to £10.
Can I reclaim VAT on Amazon fees?
If you’re VAT registered on the standard scheme, yes, using the VAT invoices in Seller Central’s Tax Document Library. If you aren’t registered, or you use the Flat Rate Scheme, the 20% is a real cost. Check your own position with an accountant.
Sami Sultan runs Ecom Enable, an Amazon growth partner for DTC brands. Fee rates and VAT treatment checked 22 September 2026. If your fees look higher than the rate card says they should, our FBA fee audit is part of the free Amazon audit.
Sources: Amazon UK: selling fees and referral rates; Amazon UK: FBA Revenue Calculator guide; About Amazon EU: 2026 European referral and FBA fee update; ChannelX: 1.5% fuel surcharge from 17 April 2026; Armstrong Watson: VAT on Amazon fees from August 2024; A2X: VAT on Amazon seller fees; Your Ecommerce Accountant: Flat Rate Scheme impact; Amazon Ads: VAT on advertising; Osome: refund administration and digital services fee; Seller Central forum: referral fee on VAT-inclusive price.