How do I calculate ACOS?

ACOS = (Ad Spend / Ad Revenue) × 100. For example, $100 ad spend generating $400 in sales = 25% ACOS.

How do I lower my ACOS?

Improve keyword targeting, optimize product listings, use negative keywords, improve conversion rates, and focus on high-performing ad groups.

Amazon ACOS Calculator — Advertising Cost of Sales

Q: What is a good ACOS for Amazon?

Good ACOS depends on profit margins. Average ACOS is 25-35%. Break-even ACOS = Profit Margin %. Aim for ACOS 5-10% below break-even for profitability.

Ad Spend ($)

Ad Sales ($)

Product Price ($)

Product Cost ($)

Units Sold from Ads

📊 ACOS Metrics

ACOS25.0%

ROAS4.0

Total Profit$700

📈 Performance

Break-Even ACOS60.0%

Profit Margin40.0%

Status✅ Profitable

What is Amazon ACOS?

Amazon ACOS (Advertising Cost of Sales) measures the percentage of revenue spent on Amazon PPC advertising. It's calculated as (Ad Spend ÷ Ad Sales) × 100%. ACOS is a critical metric for Amazon sellers to evaluate ad campaign profitability. Lower ACOS indicates more efficient advertising. ACOS varies by industry and strategy: new products often have higher ACOS (30-50%) during growth phase, established products target 15-30%.

How to Calculate Amazon ACOS

Follow these steps to calculate your Amazon ACOS accurately:

Enter your Ad Spend ($) - total amount spent on Amazon PPC
Enter your Ad Sales ($) - total revenue from sponsored product ads
Enter your Product Price ($) - your listing price
Enter your Product Cost ($) - your cost per unit
Enter your Units Sold from Ads - number of units attributed to ads
Results show ACOS, ROAS, break-even ACOS, and profitability status

Amazon ACOS Formulas

ACOS = (Ad Spend ÷ Ad Sales) × 100%

ROAS = Ad Sales ÷ Ad Spend

Break-Even ACOS = ((Price - Cost) ÷ Price) × 100%

Net Profit = (Units × Price) - (Units × Cost) - Ad Spend

Real-World Example

Example: You spend $500 on Amazon ads, generating $2,000 in sales. Your product is $25 with $10 cost, and 80 units sold:

ACOS: ($500 ÷ $2,000) × 100% = 25%

ROAS: $2,000 ÷ $500 = 4.0x

Break-Even ACOS: ($25 - $10) ÷ $25 = 60%

Net Profit: ($25 × 80) - ($10 × 80) - $500 = $700

Why Amazon ACOS Matters

Understanding ACOS helps you:

Evaluate campaigns - Determine which ads are profitable
Set targets - Establish ACOS goals by product type
Optimize bids - Adjust bids based on performance
Scale profitably - Increase spend only on profitable campaigns

Frequently Asked Questions

What is a good ACOS for Amazon?

Target ACOS varies by strategy: Brand building 30-50% (acceptable for awareness), Break-even 15-25% (covers costs), Profitable 10-15% (generating profit). What matters is ROAS and overall profitability, not ACOS alone.

What is the difference between ACOS and ROAS?

ACOS = Ad Spend ÷ Ad Sales (lower is better). ROAS = Ad Sales ÷ Ad Spend (higher is better). They are inverses: ACOS 25% = ROAS 4.0x. ROAS is more intuitive for communicating campaign value.

How do I reduce my ACOS?

Reduce ACOS by: improving keyword targeting for higher conversion rates, optimizing product listings for better conversion, adjusting bids for placements, using negative keywords to reduce wasted spend, and focusing on products with higher margins.

What is break-even ACOS?

Break-even ACOS is when your advertising costs exactly equal your gross profit. Below this ACOS, you lose money on ads. Above it, your ads contribute to profit. If margin is 40%, break-even ACOS is 40%.

Should I always target low ACOS?

Not always. Sometimes higher ACOS is acceptable for: new product launches (building history), competitive keywords (defending position), high-margin products (profitable at higher ACOS), and strategic campaigns (testing new products).