← Fred Memar Free tools · Cash flow

Cash flow & ROI

How fast your stock money can grow

Margin tells you whether a product is worth selling. How fast it can grow on its own cash depends on two other numbers: the return on every dollar you put into stock, and how long that dollar is gone before it comes back. This shows what reinvesting does to your monthly profit over time. Everything runs in your browser; nothing you enter leaves this page.

One unit

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landed: product, freight, duty, packaging
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FBA fee, or your postage and packing
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Amazon referral fee is 15% in most categories
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ad spend ÷ units, storage, returns

How long the cash is gone

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factory door to sellable in the warehouse
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from arrival until the cash is back

Growth

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of everything a batch brings back: its cost and its profit
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the most this product's market can give you. 0 = no limit
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same product, different cost or timing: air freight, a new supplier, a price change
Monthly profit later ? — —
Stock you'll carry ? — —
Cash in stock today ? — —
ROI per unit ? — —

    Monthly profit as you reinvest

    steps up each time a batch sells through

    Over time

    What each number means

    Tap any in the calculator to jump to its explanation here.

    What you enter

    Sale price

    What the customer pays for one unit.

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    Product cost

    What one unit costs to make and land in stock: product, packaging, freight to the warehouse, duty. This is the money that sits in a box while the batch is made, shipped and sold, so it's what your ROI is measured against.

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    Fulfillment fee

    The FBA fee per unit, or your postage and packing if you ship yourself. It's taken out when the unit sells, so it lowers profit without tying up cash up front.

    Where to find it: Seller Central → Fee Preview, or the FBA revenue calculator.

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    Marketplace fee

    The percentage the marketplace keeps from each sale. Amazon's referral fee is 15% in most categories; Etsy and eBay charge their own.

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    Ads & other costs per unit

    Anything else that comes out of each sale: ad spend divided by units sold, storage fees, the cost of returns. Leave it at 0 to see the product on its own, but a real plan needs it. A $2 ad cost per unit can halve the growth rate.

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    Manufacturing

    Days from paying the supplier to the goods being ready to ship.

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    Shipping

    Days from the factory to sellable in the warehouse, including customs and check-in. Ocean freight from Asia to an Amazon warehouse often runs 45–70 days; air is closer to 10–15.

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    Selling through a batch

    Once stock arrives, how long until it has sold and the marketplace has paid you. Your money doesn't come back the day the box lands; it comes back as it sells. Set it to 0 to assume every batch sells the day it arrives.

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    Starting monthly profit

    What the product makes a month today. The calculator works out the stock that level needs and grows it from there.

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    Cash put back into stock

    When a batch sells, you get back what it cost plus its profit. This is the share of that total you spend on the next batch; the rest is yours to take out. At 80%, a batch that cost $1,000 and earned $1,500 returns $2,500, and $2,000 goes into the next order.

    Below a certain level the business shrinks instead of growing; the calculator tells you where that is.

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    Look ahead

    How far out to project. Growth only happens when a batch completes, so a horizon shorter than one cycle shows no growth.

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    Monthly profit ceiling

    Reinvesting can't grow sales past what the market will buy. Set this to your best guess of the most this product could make a month, for example the profit the top sellers on your keyword are making. Use 0 for no limit.

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    Compare a second version

    Try a trade-off side by side: a cheaper supplier with longer lead times, air freight that costs more but arrives in two weeks, or a price change. A higher margin doesn't always win; a faster cycle often does.

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    What you get

    Monthly profit later

    What the product makes a month at the end of your look-ahead period if you keep putting cash back into stock. Every completed cycle multiplies it by the growth factor, until it hits your ceiling.

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    Stock you'll carry

    The inventory, at cost, that you'd need to hold to run at that later profit level. It grows at the same rate as the profit, because more sales need more stock in the pipeline.

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    Cash in stock today

    The stock needed to keep today's profit going without running out: one full cycle of sales (manufacturing + shipping + selling through), at product cost.

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    ROI per unit

    Profit per unit ÷ product cost: what each dollar in stock earns per cycle. Margin is measured against price; ROI is measured against the cash you actually put in, which is why it drives growth. A 36% margin on a $4.30 unit is a 156% ROI.

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