Profit Calculator

Overview

The Profit Calculator takes the guesswork out of product viability. You enter a project name and three competitor ASINs to establish market benchmarks. LaunchFast pulls pricing, sales velocity, reviews, and fulfillment data from those reference products so you can model your own scenario against real market conditions.

Once your project loads, you'll work through two main tabs:

1. The Competitors tab is where you calculate actual profitability using Amazon's fee structure, your estimated costs, and realistic advertising spend.
2. The Differentiation tab helps you identify product improvements that justify higher prices or lower your cost of entry.

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How to Use Profit Calculator

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Competitors Tab

The Competitors tab keeps competitive benchmarks visible while you model your own product economics.

Reference ASINs Table

The Reference ASINs table displays data for the three competitor products you selected. Use these as reference points during early product development to understand:

• Market pricing — Current competitor prices
• Sales velocity — Monthly sales volume
• Customer expectations — Review counts and product age
• Revenue potential — Monthly revenue estimates
• Market position — Best Seller Rank
• Fulfillment costs — Amazon FBA fees for similar products

Calculating Amazon Fees

The calculator below the reference table breaks down every cost component that affects your margin. As you adjust values, the key figures at the top update in real time to show your Margin %, Selling Price, Total Fees, Shipping Costs, and PPC Spend.

The calculator has seven sections that work together to determine your total cost of goods and net profit:

• Selling Price — The amount you'll charge customers on Amazon. Enter your target retail price here. This number drives all downstream calculations for fees and margins.

• Cost of Goods — Your manufacturing and sourcing costs. If you have a supplier quote, enter it here. Otherwise, estimate COG at approximately 30% of your selling price as a conservative starting point.

• PPC Per Sale — Estimates how much you'll spend on advertising to generate one sale. LaunchFast automatically calculates a default using aggregated keyword data from your reference ASINs (formula: Average CPC ÷ Average Conversion Rate). Alternatively:

  • Select 10 Clicks as a conservative rule of thumb
  • Enter a Custom value based on your own PPC strategy

• Amazon Referral Fee — Commission Amazon charges per sale

  • Percentage varies by category (typically 8% to 15% for most products)
  • Some categories have tiered pricing or minimum fees
  • Calculator automatically applies the correct rate when you select your product category from the Configuration dropdown

• FBA Fulfillment Fee — Covers Amazon's cost to store, pick, pack, ship, and handle customer service

  • Fee depends on your product's dimensions and weight
  • Choose the appropriate size tier from the Configuration dropdown: Small Standard, Large Standard, Large Bulky, or Extra-Large
  • You can also modify dimensions in the Shipping Information section; the calculator uses those values to determine your fulfillment fee automatically

• Amazon Storage Fees — Charged monthly based on the average daily volume your inventory occupies in Amazon's fulfillment centers

  • Rates vary by size tier and season
  • Peak season (October through December) costs significantly more than the rest of the year
  • Additional surcharges apply for slow-moving inventory and aged stock (271 days or longer)
  • Calculates automatically based on the shipping dimensions you provide

• Shipping Information — Captures your product's physical characteristics and customs costs

  • Enter the weight, length, width, and height of your product
  • If dimensions are pre-filled but show zero, make sure to update them for accurate fee calculations
  • Adjust the number of units per shipment and any customs costs
  • These inputs directly affect your FBA fulfillment fees, storage fees, and overall cost of goods

As you fill in each section, watch the key figures at the top of the page. These metrics update instantly to reflect your current scenario. You'll see exactly how changes to pricing, costs, or fees impact your bottom line. This real-time feedback makes it easy to model different scenarios and find the optimal balance between price, margin, and competitiveness.

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Differentiation Tab

The Differentiation tab helps you discover product improvements that increase perceived value without dramatically raising costs. Use AI-powered recommendations to identify gaps in competitor offerings, or manually document your own differentiation strategies.

AI Recommendations

Click "AI Recommendations" and LaunchFast AI will analyzes identify opportunities where you can improve:

• Features — Product functionality enhancements
• Materials — Higher-quality or more sustainable materials
• Packaging — Improved presentation or protection
• Positioning — Market positioning strategies

Each recommendation includes:

• The specific differentiator
• Reasoning behind the suggestion
• Estimated cost increase
• Potential selling price increase you could justify based on the added value

Manual Differentiation

Click the "Manual" button to create custom differentiation strategies based on your own research and expertise. This keeps all your product differentiation ideas organized inside your Profit Calculator project where you can reference them alongside your margin calculations.

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Frequently Asked Questions

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Next Steps

Ready to validate your product's profitability? Here's what to do next: