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    Amazon Break-Even ACoS Calculator

    Calculate your break-even ACoS, target ACoS and ROAS from your product costs. Add your ad conversion rate to estimate a maximum CPC.

    Free to use. No signup or Amazon connection required.

    Your numbers

    Per unit of one product, all amounts in the same currency.

    No thousands separators; use a dot or a comma for decimals.

    Changes the symbol only. Amounts are not converted.

    What you receive per unit after discounts. Use the same basis (for example with or without VAT) as your costs and the ad report you compare with.

    Everything except ads: product cost, Amazon referral and fulfilment fees, shipping, storage, returns and any other cost you count. 0 is allowed.

    The share of revenue you want to keep after these costs and ads. This is margin, not markup, and it is not company net profit unless taxes and overheads are already in your costs.

    Orders ÷ ad clicks × 100. Leave empty to skip the maximum CPC.

    Calculations run in your browser. No Amazon connection required.

    Results

    Enter your numbers and press Calculate. Results appear here.

    Results are arithmetic guidance based on the costs and assumptions you enter. They don't guarantee campaign performance.

    How it works

    The formulas behind the numbers. Simple arithmetic on your own costs.

    ACoS and ROAS

    ACoS (advertising cost of sales) is ad spend divided by the sales attributed to those ads. ROAS is the same ratio turned around. A 25% ACoS means $0.25 of ad spend per $1 of attributed sales, which equals a 4× ROAS. There is no universal good ACoS: what you can afford depends on your margin.

    ACoS = ad spend ÷ ad sales × 100% · ROAS = ad sales ÷ ad spend

    Break-even ACoS

    The share of revenue left after every cost except advertising. Spend exactly that on ads and an ad-driven sale earns nothing; spend more and it loses money.

    Break-even ACoS = (revenue − costs) ÷ revenue × 100%

    Target ACoS

    The ACoS that still leaves the margin you want after ads. It equals break-even ACoS minus your desired margin in percentage points. If your desired margin is higher than your margin before ads, no ad spend fits the target.

    Target ACoS = (revenue − costs − revenue × desired margin) ÷ revenue × 100%

    Maximum CPC

    At a conversion rate of v%, you pay for 100 ÷ v clicks per order on average. Dividing the ad spend you can afford per unit across those clicks gives the highest cost per click that keeps you on target in this model.

    Maximum CPC = ad spend per unit × conversion rate

    What to include in non-advertising cost

    • Product cost, including packaging and inbound freight
    • Amazon referral fee
    • FBA fulfilment fee, or your own shipping cost for FBM
    • Storage and other Amazon fees you pay per unit
    • Returns, refunds and damaged stock, averaged per unit
    • Payment, prep, VAT or other costs, if you count them on the same basis as revenue

    Margin is not markup

    Margin is a share of the selling price; markup is a share of cost. A product that costs $25.00 and sells for $40.00 has a 60% markup but a 37.5% margin before ads. The calculator works with margin.

    Worked example

    Illustrative numbers, not a customer result or an industry benchmark.

    1. Revenue $40.00 per unit, non-advertising cost $25.00, desired margin after ads 15%, ad conversion rate 10%.
    2. Profit before ads: $40.00 − $25.00 = $15.00. Margin before ads and break-even ACoS: 37.5%. Break-even ROAS: 2.67×.
    3. Ad spend per unit at the desired margin: $15.00 − 15% × $40.00 = $9.00.
    4. Target ACoS: $9.00 ÷ $40.00 = 22.5%. Target ROAS: $40.00 ÷ $9.00 = 4.44×.
    5. Maximum CPC: $9.00 × 10% = $0.90.
    6. Profit after ads: $6.00, which is 15% of $40.00.
    Limits of the model

    What this calculator does not do. Read it before you compare with Amazon reports.

    • One product, one unit per order

      The model looks at a single unit of a single product. If ad orders often contain several units or different products, model a comparable order instead; this version doesn't do it for you.

    • Contribution margin, not net profit

      Your desired margin is what remains after the costs you entered and ads. Taxes, salaries and other fixed costs only count if you allocated them into the cost per unit. The calculator gives no tax advice.

    • Amazon reports use attributed sales

      The ACoS in your ad reports divides spend by attributed ad sales, which can include other products, several units and different prices. Your per-unit result compares with it only when the revenue basis and the sales mix match.

    • Maximum CPC is not a bid

      It is a limit within this model at the conversion rate you entered. Actual click costs, bids, placement adjustments, attribution and conversion rates vary.

    • It doesn't measure your campaigns

      The calculator estimates the ACoS your product economics can afford. It doesn't calculate the actual ACoS of a running campaign, and it doesn't cover TACoS, which divides ad spend by total sales including organic.

    FAQ

    Questions about ACoS and this calculator.

    Subtract every non-advertising cost per unit from your revenue per unit, divide by the revenue and multiply by 100. With $40 revenue and $25 of costs, $15 is left before ads, so break-even ACoS is 15 ÷ 40 = 37.5%.

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