Amazon ACoS Calculator2020-12-21T17:04:09+00:00

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Getting to the right ACoS

There is no single right answer to the question “what is the right ACoS?”. We recommend the following:

  • Start by getting a complete view of your other cost of sales outside of advertising
  • Decide on the target profit margin you need to achieve to consider your business successful.
    * Consider your advertising goals when deciding how much profit margin to reserve. For example, all else being equal, you should reserve less profit margin for an initial product launch as compared to a mature product with pre-established organic rank
  • The remaining available margin can then be allocated to advertising (ACoS) to achieve your sales volume goals

ACoS Calculator

Fill out the form below with your product price as well as associated costs and the calculator will provide a target and breakeven ACoS.













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Frequently Asked Questions

What is ACoS?2020-10-27T14:31:53+00:00

ACoS stands for Advertising Cost of Sale. As detailed in our Beginner’s Guide to Amazon PPC, this is a calculation of how much you’re spending on Amazon advertising. This figure is then divided by your attributed promoted product sales. Accurately calculating your ACoS allows you to understand how your Amazon sponsored ad campaigns are performing. It’s also handy for figuring out whether you’re spending too much on a specific campaign – if your ROI isn’t ideal, then something needs to be done about it.

What’s the best and worst ACoS to have?2020-10-27T14:32:37+00:00

There’s a sweet spot to hit when it comes to ACoS; you want to spend as little as possible on sponsored ads while also attracting as many suitable buyers to your listings. Linking the right shoppers with the right products can help drive conversions (sales). At the same time, you don’t want to underspend on campaigns as you won’t reach as many prospective buyers. Figuring out how much profit you’ll make per unit sold can help you determine whether optimizations need to be made. 

How do I calculate ACoS?2020-10-27T14:33:03+00:00

There are three main steps you need to follow:

  • Determine your profit margin for a specific product listing
  • Calculate your break-even ACoS to see how much wiggle room you have for ad spend
  • Figure out your target ACoS to ensure sustained profitability per unit sold

Use our ACoS Calculator to get started right away, or read on to learn more about each step.

How do I calculate my profit margin?2020-10-27T14:33:21+00:00

This is done by deducting all per-unit costs associated with getting the product made, listed and shipped from the sale price. For example, if you’re selling a cat carrier for $100 and these costs come to $75, you’ll have a profit margin of 25 percent.

How do I calculate my break-even ACoS?2020-10-27T14:33:39+00:00

Calculating your break-even ACoS is easy once you know what your profit is per sale. Simply take a look at your current advertising cost per sale to see whether it exceeds this percentage. If it does, you’re losing money on every sale and something needs to be done about it. Adjusting your ad spend to ensure some sort of profit creates this break-even point.

So, I have my profit margin and breakeven ACoS. How do I calculate target ACoS?2020-10-27T14:34:15+00:00

Now, it’s time to figure out whether you can remain profitable if the sponsored ad campaign and listing remain active. The key here is identifying your target profit per unit sold after deducting the ad spend. Just how much is left, and is it enough? If not, it’s time to make campaign optimizations to ensure you make what you need to.

I’ve heard the term RoAS before. How is this different from ACoS?2020-10-27T14:34:40+00:00

RoAS stands for Return on Advertising Spend, which is what you want to raise while lowering your Advertising Cost of Spend (ACoS). This is how you’ll make money from every unit sold.

How do I lower my ACoS on Amazon?2020-10-27T14:35:13+00:00

Bidding on the right keywords for less, encouraging more positive reviews to attract new shoppers, making campaign tweaks based on perceived target audience trends, and otherwise can lower your ACoS, but any optimizations need to be handled with care. Even seasoned Amazon advertising veterans make mistakes as shoppers can be difficult to keep up with. Doing things solo, especially if managing multiple campaigns, can be a nightmare in this sense. It also heightens the risk as you may end up applying guesswork and experimenting. 

Your best bet is to use an automated tool that handles all of this carefully, making informed tweaks by using AI to analyze your campaign, listing and target audience data. Tools like Trellis offer huge benefits including intelligent keyword bidding, report generation to provide you with valuable performance insights, substantial cost savings and maximum profit potential, and the ability to rank higher while drawing more customers who are likelier to convert.