Calculate your Amazon Advertising Cost of Sales (ACoS). Enter ad spend and ad revenue to find your ACoS percentage and determine if campaigns are profitable.
ACoS (Advertising Cost of Sales) is the most important metric for Amazon PPC campaigns. It measures what percentage of your ad-driven revenue is spent on advertising. An ACoS of 30% means you spend $0.30 on ads for every $1.00 of ad-attributed revenue.
Lower ACoS is generally better, but the "right" ACoS depends on your profit margins. If your pre-ad margin is 40%, any ACoS below 40% means you're still profitable on ad-driven sales. An ACoS above your margin means you're losing money on each ad sale.
This calculator computes your ACoS from ad spend and revenue, and compares it to your profit margin to determine if your campaigns are profitable, breaking even, or losing money. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
ACoS is the single most critical metric for Amazon advertising profitability. This calculator not only computes ACoS but also compares it to your margin to determine whether your campaigns are actually making or losing money. Essential for optimizing your Amazon PPC strategy. Having a precise figure at your fingertips empowers better planning and more confident decisions.
ACoS = (Ad Spend / Ad Revenue) × 100 Ad Profit = Ad Revenue − (Ad Revenue × COGS%) − Ad Spend Break-Even ACoS = Pre-Ad Profit Margin% ROAS = Ad Revenue / Ad Spend
Result: ACoS: 25.0% | ROAS: 4.0× | Status: Profitable
Ad spend: $500. Ad revenue: $2,000. ACoS: $500 / $2,000 = 25%. Your margin is 35%, so break-even ACoS is 35%. At 25% ACoS you're 10 points below break-even, meaning each ad dollar generates profit. ROAS: $2,000 / $500 = 4.0×. Ad profit: $2,000 × 35% − $500 = $200.
Electronics: 15‒25% average ACoS. Home & Kitchen: 20‒30%. Beauty: 20‒35%. Grocery: 15‒25%. Pet Supplies: 20‒30%. Clothing: 25‒40%. These are averages — your target ACoS should be based on YOUR margin, not category averages.
Week 1–2: Launch campaigns with broad and phrase match, collect data. Week 3–4: Add negative keywords, move winning search terms to exact match. Month 2–3: Optimize bids based on keyword-level ACoS data. Month 3+: Scale profitable campaigns, pause losers, test new keywords. Continuous optimization is key — ACoS is never "set and forget."
ACoS only measures ad-driven sales efficiency. TACoS (Total Advertising Cost of Sales) measures ad spend against TOTAL revenue including organic. TACoS is a better indicator of overall advertising efficiency because successful PPC campaigns also boost organic ranking and sales.
ACoS (Advertising Cost of Sales) is the percentage of ad-attributed revenue spent on advertising. ACoS = Ad Spend / Ad Revenue × 100. A 25% ACoS means you spent $25 in ads to generate $100 in revenue. It's the inverse of ROAS (Return on Ad Spend).
A "good" ACoS is anything below your pre-ad profit margin. If your margin is 30%, ACoS below 30% is profitable. Average ACoS across Amazon is 15–30%. Top performers achieve 10–20% ACoS. New product launches often run 40–70% ACoS intentionally to build momentum.
They're inverses. ACoS = Ad Spend / Revenue. ROAS = Revenue / Ad Spend. An ACoS of 25% means ROAS is 4× ($4 revenue per $1 spent). ACoS is Amazon's standard metric; ROAS is more common on other advertising platforms (Google, Facebook).
Optimize for total profit, not ACoS alone. A 15% ACoS generating $1,000 in sales ($150 ad cost, $200 profit) is worse than a 25% ACoS generating $5,000 in sales ($1,250 ad cost, $500 profit). Lower ACoS at lower volume doesn't always mean more money in your pocket.
Common causes of high ACoS: too many broad match keywords catching irrelevant searches, low listing conversion rate (poor photos, reviews, or pricing), high CPC from competitive bidding, targeting expensive high-volume keywords, or a new listing without enough reviews. Diagnosing the root cause requires checking your search term report for wasted spend and comparing your listing quality against top competitors in the category.
Top strategies: (1) Add negative keywords to eliminate irrelevant clicks, (2) Lower bids on unprofitable keywords, (3) Improve listing conversion (better photos, A+ Content, reviews), (4) Target long-tail keywords with less competition, (5) Use exact match for proven keywords, (6) Increase price (if market allows) to improve margin. Consistently applying these optimizations week over week typically reduces ACoS by 20–40% within two to three months.