How the ROI Calculator works
ROI answers: for every dollar I spend on inventory, how much profit comes back? It is the key number for wholesale and arbitrage sellers because it tells you how fast your cash grows.
ROI is different from margin. Margin compares profit to the selling price; ROI compares profit to what you paid.
Formula
- ROI = Net profit ÷ Investment × 100
- Investment = Product cost + Inbound shipping + Prep
Example
An $8.50 profit on a $10.50 investment is an 81% ROI.
Net profit per unit (or total): 8.5Investment (cost + shipping): 10.5
Frequently asked questions
What ROI should I aim for?
Retail/online arbitrage: 30%+ after fees. Wholesale: 20–40%. Private label: 50–100% to absorb launch PPC. Lower ROI can still work if the money turns over quickly.
Does ROI include advertising?
Only if your profit number already deducts it. Use the FBA Profit Calculator to get a profit figure that includes PPC and returns.