What is Max Cost and how is it calculated?

Max Cost is the most you can pay for the product and still reach both your Minimum ROI and your Minimum profit, the two targets in your Seller Settings.

How it's worked out

1. It starts from the Sale Price. That's the Buy Box price, unless you type a different one.
2. It takes off every fee: Amazon's referral fee, the FBA fee (or your shipping on FBM), the closing fee on media, storage, and your prep and misc costs. What's left is your payout.
3. It works out two limits:
   • the cost that leaves exactly your minimum ROI, which is the payout divided by (1 + your minimum ROI)
   • the cost that leaves exactly your minimum profit, which is the payout minus your minimum profit
4. Max Cost is the lower of the two.

An example

A product sells for $30 and its fees add up to $10, so the payout is $20. With the default targets of 25% ROI and $3 profit:

• the ROI limit is $20 ÷ 1.25 = $16.00
• the profit limit is $20 − $3 = $17.00

Max Cost is $16.00. If you pay $16 or less, you hit both targets.

Things that change it

• It turns red when your Cost Price is above it.
• It moves when you change the Sale Price, or switch between FBA and FBM.
• For a multipack (Pack of N), Max Cost is for the whole pack, and what that comes to per item is shown under it.
• If it's negative, no buying price can meet your targets at that sale price.
• You can change your targets in Settings > Seller Settings (what each setting does).