Free tool

Amazon Break-Even ACOS Calculator

A 10% ACOS can be excellent or terrible depending on your margin. Enter your unit costs to find the ACOS where advertising stops being profitable, and check how your current ACOS compares.

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Storage, prep, etc.

% of price

A rough estimate of margin lost to returns.

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Enter your price, landed cost, FBA fee and referral % (use 0 for any that don't apply) to see your break-even ACOS. Price must be greater than any discount.

The formula

Break-even ACOS = (net price − landed cost − fulfillment fee − referral fee − other costs − return allowance) ÷ net price. Break-even CPC = contribution per unit × conversion rate.

  • Use the net selling price after discounts and coupons, not the sticker price.
  • The referral fee here is a percentage of net price. Check Amazon's Fee Preview for your category and exact figures.
  • The return allowance is a rough estimate of margin lost to returns, as a percentage of price. Leave it at 0 to ignore returns.
  • ACOS only counts ad spend against ad-attributed sales. This calculator shows what margin is left before advertising enters the picture.

Frequently asked questions

What is break-even ACOS?

Break-even ACOS is roughly the contribution margin available before advertising. A $30 product with $24 in non-ad variable costs leaves $6 for ads and profit combined, a 20% break-even ACOS.

Can a low ACOS still lose money?

Yes. ACOS excludes referral fees, fulfillment, storage, returns and cost of goods. A product that is already unprofitable before advertising can run a low ACOS and still lose money on every sale.

What is the difference between ACOS and TACOS?

ACOS divides ad spend by ad-attributed sales. TACOS divides ad spend by total sales, including organic, which shows how dependent a product is on advertising. Neither says anything about product margin on its own.

Go deeper

EcomSanity shows sales and inventory per ASIN side by side, so an ad metric is never read in isolation from the stock behind it.

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