Amazon ACOS Calculator

Enter your selling price, total costs, and target profit margin to calculate a target ACOS.

Enter your ad spend and revenue to calculate ACOS, ROAS, and TACOS.

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Amazon ACOS Calculator User Guide

This tool is designed to help you calculate several key Amazon advertising metrics for your business.

It has four related but slightly different functions:

1. Target ACOS Calculator

Calculate profitable advertising targets. Get started by entering:

  • Selling Price: The current or target selling price of your product.
  • COGS: The total landed cost of your product including manufacturing, shipping, and import taxes.
  • Amazon Fees: The total amount paid in fees to Amazon for each sale. Include referral and fulfillment fees.
  • Target Margin: Your desired profit margin percentage after all expenses and advertising.

The tool will then produce the following results:

Break-even ACOS

This is the ACOS you need to achieve to break even with your Amazon ads.

It’s a key metric to know when planning your advertising campaigns because it helps you understand how aggressive you can be with your Amazon ads.

Given the importance of establishing organic ranking on the platform, many sellers will use Amazon PPC as a tool to drive more ranking.

As such, a common strategy is to aim for a break-even ACOS on advertising spend in a view to collect profit on the organic sales achieved from the ranking the ad spend helps generate.

Target ACOS/TACOS

This is the ad spend % to aim for to achieve your target profit margin.

At a basic level you can use target ACOS and apply this goal to any ad campaign you are launching.

PRO TIP

A more effective strategy is to use this as a target TACOS as your advertising spend should be driving organic visibility.

This allows you to be more aggressive with your ACOS as long as your TACOS is coming down.

Read More: ACOS vs TACOS in-depth

Profit at Target Margin

This is the average profit — in dollars — per unit sold at your target margin and helps you get a picture of how profitable — or otherwise — your product would be with the given data.

2. Current ACOS Calculator

Calculate current advertising campaign metrics like ACOS, ROAS, and TACOS. Get started by entering:

  • Ad Revenue: The total revenue your Amazon ads have generated in a given period.
  • Ad Spend: Your total Amazon advertising costs in the same given period.
  • Total Revenue: Toggle ‘Calculate TACOS’ on to ad a field for total revenue generated. This should include both ad revenue and organic revenue.
  • Clicks: The number of clicks your ads have generated in the given period.
  • Orders: The number of orders your ads have generated in the given period.

The tool will then produce the following results:

  • ACOS: Advertising Cost Of Sale. The relative cost of your ads vs the sales they generate.
  • ROAS: Return On Ad Spend – the inverse of ACOS. The volume of sales in relation to ad spend.
  • TACOS: Total Advertising Cost Of Sale. The relative cost of your ads vs the total sales of your business.
  • Cost Per Click: The average cost of each click generated by your Amazon ads.
  • Conversion Rate: The rate at which clicks turn into orders through your Amazon ads.

Cost per click (CPC) and conversion rate (CVR) are key metrics to understand as they are the biggest influencers of your overall ACOS.

Read More:

3. ACOS to ROAS

Use this tool to convert your ACOS (Advertising Cost Of Sale) into ROAS (Return On Ad Spend).

Simply adjust the ACOS slider to the correct ACOS and see the resulting ROAS alongside.

Given the prominence of ROAS on most other advertising platforms it’s helpful to understand it in relation to your Amazon PPC campaigns.

Read More: ACOS vs ROAS in-depth

4. ROAS to ACOS

Use this tool to convert your ROAS (Return On Ad Spend) into ACOS (Advertising Cost Of Sale).

Simply adjust the ROAS slider to the correct ROAS and see the resulting ACOS alongside.

FAQs

ACOS is calculated by dividing ad spend by ad sales and multiplying by 100. For example, if you have spent $20 on your advertising campaign and it has generated $100 in sales then your Amazon ACOS would be 20%.

The Amazon ACOS formula is therefore: (ad spend/ad sales) * 100, or (20/100)*100 = 20%

What is a “good” Amazon ACOS is a somewhat subjective question as it really does depend on a few things.

Firstly, the marketplace you’re selling on and the category you’re selling in. The more competitive the landscape the higher the potential advertising costs. Therefore what is a bad ACOS for one seller may be a good ACOS for another.

Secondly, your goal will also determine your Amazon ACOS strategy. When just starting out and launching a product you will have a different goal than when you look to optimize over the long term.

Generally speaking, an ACOS that makes your ad campaign profitable is good, which is why using this tool to calculate your break-even point is very useful.

Read More: Amazon ACOS explained

A high ACOS isn’t inherently bad as much as a low ACOS isn’t guaranteed to be a good thing for your business. If your ACOS is too high of course your profit margin will suffer. However, if your ACOS is too low you may be missing out on valuable sales by over-optimizing advertising campaigns. A good balance needs to be found within your overall Amazon PPC strategy.