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ACoS Calculator & Profit Analyzer

Calculate Advertising Cost of Sales (ACoS) and determine your Break-Even point. Essential for Amazon PPC and e-commerce marketing analytics.

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About

In performance marketing, specifically for platforms like Amazon PPC, the Advertising Cost of Sales (ACoS) is the primary metric for campaign efficiency. It represents the ratio of ad spend to the revenue generated from those ads. Unlike ROAS (Return on Ad Spend), which is the inverse, a lower ACoS typically indicates higher efficiency. However, "low" is relative. A campaign with a 40% ACoS is profitable only if the product's profit margin exceeds 40%.

This tool helps marketers compare their Actual ACoS against their Break-Even ACoS. The Break-Even ACoS is mathematically equivalent to the profit margin before advertising. If the Actual ACoS is lower than the profit margin, the campaign is net positive. If it is higher, the campaign is losing money on every sale, which might be a strategic choice for ranking but is unsustainable for profitability.

ppc amazon fba marketing metrics roas profitability

Formulas

To determine if a campaign is profitable, we compare the Actual ACoS to the Break-Even point:

Profit = Revenue × (BreakEvenACoS − ActualACoS)

Where the Break-Even ACoS is defined by the unit economics:

BreakEvenACoS = SalePrice − (COGS + ShipFees)SalePrice

Reference Data

MetricFormulaGood Benchmark (Retail)
ACoSAd SpendAd Revenue × 10015% - 30%
ROASAd RevenueAd Spend3x - 6x
Break-Even ACoSPrice − COGS − FeesPriceVaries by Product
Net ProfitRevenue × (Margin − ACoS)> 0

Frequently Asked Questions

A "good" ACoS depends entirely on your profit margin. If your product has a 35% margin, an ACoS of 30% is profitable (leaving 5% net profit). If your margin is 20%, that same 30% ACoS results in a loss. Generally, for a mature product on Amazon, 15-25% is considered healthy.
Not necessarily. An extremely low ACoS (e.g., 5%) often means you are bidding too conservatively and missing out on potential sales volume. Scaling a campaign usually increases ACoS but can deliver higher total absolute profit dollars.
Subtract your Cost of Goods Sold (COGS) and all platform fees (like Amazon Referral and FBA fees) from your selling price. Divide this result by the selling price. This percentage is your Break-Even ACoS. You must keep your ad spend below this percentage to make a profit.