How the Break-even ACoS Calculator works
ACoS (advertising cost of sales) is ad spend divided by ad-attributed sales. Your break-even ACoS is simply your profit margin before advertising: spend that much of the price on ads and the sponsored sale earns nothing.
Formula
- Break-even ACoS = (Price − Product cost − Shipping − Amazon fees − Returns − Misc) ÷ Price × 100
- Break-even ROAS = 100 ÷ Break-even ACoS
Example
Roughly 36% break-even ACoS: you can spend up to about $12.50 in ads per sponsored sale.
Selling price: 34.99Amazon category: home_kitchenProduct cost (per unit): 9Inbound shipping (per unit): 1.5FBA fulfillment fee: 5.37Return rate %: 3
Frequently asked questions
What ACoS should I target?
Below break-even by your desired margin. If break-even is 36% and you want 15% net margin, target 21% ACoS.
Does TACoS matter more?
For the whole business yes: TACoS spreads ad spend over all sales, including organic. Use the TACoS calculator for that view.