FBAZone — Amazon seller tools

Maximum Buy Cost Calculator

The most you can pay a supplier per unit and still hit your ROI and margin targets.

Sourcing & landed cost
Product
$

Sets the referral fee percentage from the active fee table.

Amazon fees
$

Leave blank to calculate from category and price.

$

Leave blank to estimate from weight and dimensions.

$
Size & weight
Costs
$
$
Advertising
%

Expected ad spend as a share of revenue (TACoS).

%
Targets
%
%
Free account required
Fill in the inputs and press Calculate. Results, a verdict and the formula trail appear here.

How the Maximum Buy Cost Calculator works

Instead of asking 'is this product profitable at the supplier's price?', flip it: what is the highest price that still meets my goals? This is the number to carry into supplier negotiations.

Formula

  • Net before COGS = Price − Referral − FBA − Storage − Shipping − Ads − Returns − Misc
  • Max cost for ROI r = (Net before COGS − r × Shipping) ÷ (1 + r)
  • Max cost for margin m = Net before COGS − m × Price
  • Result = the lower of the two

Example

About $12.45 is the most you can pay for 30% ROI.

Selling price: 29.99Amazon category: home_kitchenFBA fulfillment fee: 5Inbound shipping (per unit): 1Advertising (PPC) % of price: 10Target ROI %: 30

Frequently asked questions

Should I use landed cost?

Yes. Treat the result as the maximum landed cost (unit price + freight + duty per unit), not just the factory price.