ACOS Profitability Calculator
Find your "Break-Even ACOS". Stop bleeding money on Amazon PPC ads.
How This Tool Works
This tool calculates your Break-Even Advertising Cost of Sales (ACOS). It tells you exactly when your Amazon PPC spend starts eating into your actual product profit.
- Pre-Ad Margin: The profit remaining after COGS and FBA fees.
- Break-Even Point: If your ACOS equals your margin, you are making $0 profit but losing no money.
- Profit Zone: Any ACOS lower than the break-even point results in net profitable sales.
How to Use (Steps)
- Selling Price: Enter the final price customers pay.
- Product Cost: Total cost to manufacture and ship to Amazon (Landed Cost).
- FBA Fees: Include both referral fees (usually 15%) and pick & pack fees.
- ACOS Comparison: Input your current ad performance to see your unit-level profit.
Example Calculation
Scenario: Private Label Kitchen Gadget.
• Selling Price: $30.
• COGS + FBA Fees: $18.
• Pre-Ad Profit: $12 (40% Margin).
• Break-Even ACOS: 40%.
• If your ACOS is 25%, you keep $4.50 profit per
unit.
Why This Tool Is Accurate
Unlike generic calculators, this tool focuses on the unit-level math that Amazon uses for its "Fee Preview." By separating COGS from FBA fees, you get a granular look at your true operational efficiency.
Limitations & Disclaimer
This calculator does not account for "TACOS" (Total ACOS), which includes organic sales. It only looks at the profitability of a single ad-attributed sale. Disclaimer: PPC performance fluctuates; use this as a strategic baseline.
Frequently Asked Questions
A "good" ACOS depends on your goal. For established products, 15-25% is often ideal. For new launches, an ACOS equal to your Break-Even point is acceptable to gain ranking and reviews.
Break-Even ACOS = (Profit Before Ads / Selling Price). Essentially, your Break-Even ACOS is equal to your pre-advertising profit margin.
Lower ACOS by optimizing your conversion rate (better images/copy), lowering your CPC (cost per click) through negative keyword management, or increasing your product's selling price.