Amazon PPC ACOS & ROAS Calculator
Determine if your Amazon advertising campaigns are actually profitable. Calculate ACOS, ROAS, and your break-even threshold.
Determine if your Amazon advertising campaigns are actually profitable. Calculate ACOS, ROAS, and your break-even threshold.
Your margin before ad costs.
Drive sales with influencers, not expensive PPC.
ACOS and ROAS are the two most important metrics for measuring Amazon PPC performance. Understanding both helps you optimize ad spend and maximize profitability.
ACOS shows what percentage of your ad revenue goes to advertising costs. A 30% ACOS means you spend $0.30 on ads for every $1 in ad-attributed sales. Lower is generally better, but optimal ACOS depends on your profit margins.
ROAS measures how much revenue you generate per dollar spent on ads. A ROAS of 3.0x means you earn $3 for every $1 spent. ROAS is simply the inverse of ACOS expressed as a multiplier.
Your break-even ACOS equals your profit margin before ad spend. If your margin is 35%, any ACOS below 35% is profitable.
Before running ads, calculate your profit margin after all costs (COGS, FBA fees, referral fees, shipping). This margin is your break-even ACOS. For example, if you make $10 profit on a $40 product, your break-even ACOS is 25%.
Set your target ACOS 5-10% below break-even to ensure profitability. If break-even is 35%, target 25-30% ACOS. New products may need higher ACOS initially to build ranking and reviews—just ensure you have budget for this investment.
Reducing ACOS while maintaining sales volume is the key to scaling profitably on Amazon.
Regularly audit search term reports. Pause keywords with high spend and low conversions. Reduce bids on broad keywords and increase spend on proven converters. Negative keyword usage prevents wasted spend.
Influencer and social media traffic often converts at 2-3x the rate of PPC traffic and costs significantly less. Amazon's Brand Referral Bonus gives you 10% back on external traffic sales.
Better listings mean lower ACOS. Optimize main images, add video, improve bullet points, and collect more reviews. A 2% to 4% conversion rate improvement can cut ACOS nearly in half.
TACOS = Ad Spend ÷ Total Revenue (organic + ad sales). As organic sales grow, TACOS decreases even if ACOS stays flat. This shows the true impact of ads on overall business performance.
A "good" ACOS depends entirely on your profit margins. Generally, 15-25% ACOS is considered strong for most categories. However, if your profit margin is 40%, even a 35% ACOS is profitable. New product launches often run 50%+ ACOS intentionally to build ranking.
Both metrics tell you the same thing—just expressed differently. Amazon sellers typically use ACOS because that's what Amazon reports. ROAS is more common in other advertising platforms. A 25% ACOS = 4.0x ROAS, and a 33% ACOS = 3.0x ROAS.
New products lack reviews, sales history, and organic ranking—all factors that improve conversion rates. High ACOS in the first 2-3 months is normal. Focus on getting reviews, optimizing listings, and gradually reducing bids as organic sales grow.
Influencer traffic drives sales that don't require PPC spend. More organic and external sales improve your total ACOS (TACOS) and can boost your organic ranking, reducing long-term PPC dependency. Amazon's Brand Referral Bonus also gives you 10% back on influencer-driven sales.