How the Maximum CPC Calculator works
The maximum CPC is the bid at which your advertising cost of sale equals your ACoS ceiling. Bid above it and every sponsored sale costs more in ads than you allowed for.
It has three levers: a higher price, a better conversion rate, or a higher ACoS you are willing to accept. Conversion is the lever most sellers overlook.
Formula
- Revenue per click = Price × Conversion rate
- Max CPC = Price × Conversion rate × Target ACoS
- Break-even CPC = Price × Conversion rate × Break-even ACoS
Example
Each click is worth $3.00; at 20% target ACoS bid up to $0.60, and $1.05 is the absolute break-even.
Selling price: 29.99Conversion rate %: 10Break-even ACoS %: 35Target ACoS % (optional): 20
Frequently asked questions
Amazon suggests a higher bid than my max CPC. What now?
Suggested bids reflect competition, not your economics. If the suggested bid is above your max, the keyword is only worth it as a ranking investment.
Does this apply to Sponsored Brands too?
Yes, but Sponsored Brands clicks land on a store or multi-product page, so use the blended conversion rate of those products.