Determine your advertising breakeven and target ACoS quickly with our calculator.
Just input your data for instant insights.
ACoS stands for advertisement cost of sale. It is the key metric used in online advertising on the Amazon platform.
It measures the performance of advertisement campaigns by calculating the ratio of your ad budget to your ad revenue.
Let us understand this by an example. For instance, if you spend $10 on advertisement and generate $50 in sales your ACoS is 20%.
Calculating ACoS is straightforward. Follow these 4 simple steps to calculate your advertisement cost of sale.
The Advertising Cost of Sales formula is
ACoS = (Total Ad Spend / Total Ad Revenue) x 100
For calculating break-even ACoS use the following formula
Break Even ACoS = Sales Price – Commission Fees – Cost of Goods Sold
There is no benchmark for good ACoS, it depends upon your industry and goals for your ad campaign.
If your goal is to maximize the profit you can set a low ACoS ideally below 20%. But if your goal is high visibility in your niche or brand you set a high ACoS even more than 40%.
You should wisely choose the right ACOS based on your goal.
In general, a good ACoS percentage is lower than the break-even ACoS. The average ACoS on Amazon is around 27%.