Amazon PPC ACoS Calculator
Calculate your Amazon PPC ACoS, TACoS, and break-even ACoS. Find out whether your advertising campaigns are profitable and exactly how much headroom you have before ads become a loss.
What Is Amazon ACoS and How Is It Calculated?
ACoS (Advertising Cost of Sale) measures how much you spent on ads relative to the revenue those ads generated. ACoS = Ad Spend ÷ Revenue from Ads × 100. A 20% ACoS means for every $100 in ad-attributed revenue, you spent $20 on advertising. ACoS alone doesn't tell you if ads are profitable — that depends on your margin.
The problem with interpreting ACoS in isolation: a 25% ACoS is excellent for a product with a 40% margin, and catastrophic for a product with a 20% margin. Context is everything. This is why break-even ACoS — derived from your product's gross margin — is the critical number, not ACoS itself.
Break-Even ACoS — The Number That Actually Matters
Your break-even ACoS equals your gross margin percentage before advertising. If your product has a 28% margin before ads, you can spend up to 28% of advertised revenue on ads before losing money on each ad-driven sale. Spending below break-even ACoS = profitable ads. Above it = you're paying Amazon to lose money.
To get your gross margin before ads, use our FBA Profit Calculator without entering a PPC cost — that gives you the baseline margin this calculator needs. If you want to find your minimum required selling price given a target ACoS, use the Break-Even Price Calculator.
ACoS vs TACoS — What's the Difference?
ACoS divides ad spend by revenue from ads only. TACoS (Total ACoS) divides ad spend by all revenue — organic plus ad-attributed. TACoS gives a better picture of overall advertising efficiency because it captures the halo effect: when PPC campaigns drive ranking improvements, organic sales increase as a result. An ad campaign can appear unprofitable on ACoS but be highly valuable when measured on TACoS, because the organic lift it generates isn't captured in ad-attributed revenue alone.
For mature, ranked products with stable organic velocity, optimize for ACoS. For new or growing products where ads are driving ranking and organic growth, track TACoS. A product with 35% ACoS and 8% TACoS is spending heavily on ads but generating strong organic volume — that's often a healthy growth investment, not waste.
Frequently Asked Questions
What is a good ACoS for Amazon FBA?▼
A good ACoS depends entirely on your gross margin. Your break-even ACoS equals your margin % before advertising. Most sellers target ACoS 5–10 percentage points below break-even for healthy ad profitability. There is no universal 'good' ACoS number.
How do I lower my Amazon ACoS?▼
Key strategies: harvest profitable search terms from broad/phrase campaigns into exact match, add negative keywords to stop spending on irrelevant searches, lower bids on keywords with ACoS above break-even, and pause keywords that have spent >10× your target CPA with no sales.
Can I have a profitable business with ACoS above break-even?▼
Short-term, yes — during product launch, accepting above-break-even ACoS is common to build velocity and ranking. Long-term, ads must eventually become profitable or break-even, or you're subsidizing Amazon to grow a business that can't sustain itself.
What TACoS is healthy for Amazon FBA?▼
For a scaled, mature product, most sellers target TACoS of 5–15%. Above 20% TACoS suggests heavy dependence on paid traffic. Below 5% TACoS usually indicates strong organic ranking and minimal ad spend relative to overall volume — the ideal state for any FBA product.
Related Amazon FBA Calculators
- Amazon FBA Profit Calculator
- Amazon FBA Break-Even Price Calculator
- Amazon FBA Target Margin Calculator
- Amazon FBA Fee Calculator
- Amazon FBA Return Impact Calculator
- Amazon FBA ROI Calculator
See all tools on the Amazon FBA Calculators hub.
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