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Amazon ACoS and break-even ACoS calculator

Most sellers optimise towards a target ACoS without knowing the number at which the ad itself loses money. Enter your unit economics and ad spend, and you get your break-even ACoS, your current ACoS, the headroom between them and a maximum viable CPC.

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Amazon PPC managers and sellers

ACoS Calculator

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Campaign and unit economics

ACoS compares ad spend to ad-attributed sales. It says nothing about whether those sales were profitable, which is why the break-even figure below matters more than the percentage on its own.

Current ACoS

26.7%

Ad spend divided by ad sales

Break-even ACoS

59.0%

Your contribution margin

Headroom

+32.3 pts

Room before advertising stops paying for itself

Max CPC

$2.24

At your stated conversion rate

What the numbers mean

Profitable
Ad spend$2400.00
Ad-attributed sales$9000.00
Contribution per unit$23.59
Contribution margin59.0%
Profit after advertising$2909.08
TACoS17.1%

Profit after advertising excludes fixed costs such as software, salaries and storage of unsold inventory. It answers one question: did this campaign pay for itself?

What this works out

  • ACoS as ad spend divided by ad-attributed sales
  • Break-even ACoS derived from your actual contribution margin
  • Profit after advertising spend on the attributed sales
  • A maximum CPC at your observed conversion rate
  • TACoS when you provide total revenue, not just ad revenue

If the result raises a question you would rather not answer alone, the related services below are the parts of the business this tool usually points at. There is no obligation attached to any of it.

Questions about this tool

What is break-even ACoS?

The ACoS at which every ad-attributed sale earns exactly zero profit before fixed costs. It equals your contribution margin as a percentage: if a product keeps 30% of its price after variable costs, a 30% ACoS is the point where advertising pays for itself and nothing more. Above that, you are buying revenue rather than profit.

Why is my break-even ACoS different from my target ACoS?

Because target ACoS is usually set from a rule of thumb or a category benchmark, while break-even ACoS comes from your own cost structure. A product with a strong margin can profit at 40% ACoS. A thin-margin product can lose money at 15%. Using someone else's target is how sellers end up scaling a campaign that never made sense.

How do I calculate maximum CPC?

Maximum CPC equals price multiplied by contribution margin, multiplied by conversion rate. If a $40 product keeps 30% and converts at 10%, the most you can pay per click and still break even is $1.20. Below that, the click is profitable before any organic halo is counted.

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