Amazon India profit calculator
See what one unit really earns after Amazon’s fees and GST — and how much of that you can afford to spend on ads. You get your break-even ACoS and the maximum CPC to bid, not just a margin.
Calculator
Results
Illustrative estimate — not a promise of results
| Selling price (incl. GST) | — |
|---|---|
| − GST on the sale (18%) | — |
| Revenue excluding GST | — |
| − Referral fee (13%) | — |
| − Closing fee | — |
| − FBA fee | — |
| − Shipping (your courier) | — |
| − Product cost excluding GST | — |
| − Packaging & other | — |
| − Returns allowanceReturn rate × 2 × fulfilment fee | — |
| Profit before ads | — |
| − Ad spend (0% TACoS) | — |
| Profit after ads | — |
| GST on Amazon fees (18%)Input tax credit, reclaimable | — |
|---|---|
| GST credit on product costInput tax credit on your purchase | — |
| TCS withheld (0.5%)Recoverable in your GST cash ledger | — |
| Net GST payable after creditsGST on the sale − credits on fees, stock and ads | — |
| Amazon settlement per unitPrice − Amazon fees − fee GST − TCS | — |
Estimates for planning only, not tax or financial advice. Amazon’s fees change and vary by listing, so check the figures you enter against your Seller Central fee preview. Assumes you are GST-registered and claim input tax credit.
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How the calculator works out your profit
On Amazon.in the price a customer pays already includes GST, so the first step is taking that GST out: the rest is your revenue. Amazon’s referral fee is then charged on the full, GST-inclusive price, and its closing and fulfilment fees are added on top. Take away those fees, your product cost excluding GST, packaging and an allowance for returns, and you have the profit on one unit before any advertising.
That profit is the budget your ads can spend. Divide it by the selling price and you get your break-even ACoS. Multiply it by your conversion rate and you get the most you can pay for a click.
GST on the sale
price × rate ÷ (100 + rate)At 18%, a ₹1,180 price holds ₹180 of GST and ₹1,000 of revenue.
Profit before ads
revenue excl. GST − Amazon fees − product cost excl. GST − packaging − returnsAmazon fees are taken excluding GST, because the GST on them can be claimed back.
Break-even ACoS
profit before ads ÷ selling price (incl. GST)Amazon reports ACoS against GST-inclusive sales, so the same base is used here.
Max CPC
break-even ACoS × price × conversion rateThis is the same as profit per unit × conversion rate: the most a click can cost before an ad sale stops paying for itself.
Target ACoS
(profit − target margin × revenue excl. GST) ÷ priceKeeps the margin you choose after paying for ads.
Settlement per unit
price − Amazon fees − GST on fees − TCSRoughly what Amazon pays out on each unit, before any GST credits come back.
Amazon.in seller fees and GST, in brief
Referral fee. A percentage of the selling price, set by category and sometimes by price band. The category list above fills in typical rates, and you can change the figure for your listing.
Closing fee. A fixed amount per item that depends on the price band and fulfilment channel.
Fulfilment. With FBA you pay pick-and-pack and weight-handling fees. With Easy Ship, Amazon’s carrier collects from you for a shipping fee. With Self Ship you use your own courier and pay it directly.
GST. Amazon charges GST on its fees and on ads. A registered seller can claim that as input tax credit, and it is shown separately so it doesn’t distort your margin.
Frequently asked questions
What fees does Amazon.in charge a seller on each sale?
Usually three: a referral fee (a percentage of the selling price that varies by category and price band), a closing fee (a fixed amount per item that depends on the price band and fulfilment channel), and a fulfilment or shipping fee (FBA pick-pack and weight handling, or the Easy Ship shipping fee) that depends on size, weight and distance. Amazon adds GST at 18% on its fees. Fee schedules change, so confirm the exact figures for your listing in the Seller Central fee preview and enter them here.
Is GST part of my Amazon revenue?
No. The price shown on Amazon.in already includes GST, and that GST belongs to the government. On a ₹1,180 sale at 18% GST, ₹180 is output GST and ₹1,000 is your revenue. If you are GST-registered you can offset input tax credit — on the GST you paid on stock, on Amazon’s fees and on advertising invoices — against that output GST. That is why this calculator works out profit on the ex-GST figures.
What is break-even ACoS?
Break-even ACoS is your profit per unit before advertising divided by the selling price. It is the highest ACoS at which an ad-driven sale still covers its own ad cost: below it the sale makes money, above it the sale loses money. Amazon reports ACoS as ad spend divided by GST-inclusive sales, so the calculator uses the GST-inclusive price too.
How do I work out the maximum CPC I can bid?
Multiply break-even ACoS by the selling price and by your conversion rate (orders ÷ clicks) — which is the same as your profit per unit times your conversion rate. At a 30% break-even ACoS, a ₹1,000 price and a 10% conversion rate, you can pay up to ₹30 a click before ad sales stop making money. Bid below that to keep some margin, and use the conversion rate from your own campaigns rather than an average.
Why aren’t TCS and the GST on Amazon fees counted as costs?
Both come back to a GST-registered seller. Amazon collects TCS under Section 52 of the CGST Act on your net taxable sales and deposits it against your GSTIN, where it reaches your electronic cash ledger. The GST on Amazon’s fees is input tax credit you can claim. They reduce the cash in each settlement, so the calculator shows them in the settlement figure, but they are not part of your cost. If you cannot claim input tax credit, treat the fee GST as a cost.
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