Amazon 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.
What’s a Good ACoS?
A good ACoS varies based on industries and products type. Amazon merchants have an average ACoS of 30-35%. However, there is no good or bad ACoS because it depends on multiple factors. Therefore, an average of 35% may not apply to you. Nonetheless, the end goal remains the same for all Amazon merchants – lowering ACoS. The lower the ACoS is, the higher the profit margin gets.
Read our comprehensive guide on how to reduce your ACoS to drive profitable growth on Amazon.
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Frequently Asked Questions
What is ACoS?
ACoS stands for Advertising Cost of Sale. As explained 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.
How do I calculate ACoS?
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?
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?
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, which is alarming. Adjusting your ad spend to ensure you’re making some profit creates this break-even point.
So, I have my profit margin and breakeven ACoS. How do I calculate target ACoS?
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 optimize your campaign to ensure your business meets the target profit.
I've heard the term RoAS before. How is this different from ACoS?
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?
Bidding on the right keywords for less, encouraging more positive reviews to attract new shoppers, making campaign tweaks based on perceived target audience trends can help lower your ACoS. However, optimizations should be handled with care. Even seasoned Amazon advertising veterans make as customer preferences continue to evolve. Doing things solo, especially when 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 platform that handles all of this carefully, making informed tweaks by using AI to analyze your campaign, listing, and target audience data. Platforms like Trellis offer huge benefits including, campaign automation, full-funnel targeting, composite ad plans, brand and shelf analytics, and built-in video advertising features. These features provide valuable performance insights, substantial cost savings, and the ability to rank higher while converting the right customers. The result? A boost in effective demand that drives profitable growth.