Amazon ACoS & TACoS Calculator
Enter your Amazon PPC numbers to calculate ACoS, TACoS, and ROAS instantly. See whether your ad spend is profitable and how your organic sales offset your advertising costs.
Your PPC Numbers
Total PPC spend for the period
Sales attributed to your ads
All sales including organic
Pre-ad gross margin to calculate break-even
ACoS vs TACoS
ACoS (Advertising Cost of Sales) measures ad spend as a percentage of ad-attributed revenue only. TACoS (Total ACoS) measures ad spend as a percentage of all revenue, including organic. TACoS gives a fuller picture of how advertising drives your overall business.
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Understanding your ACoS and TACoS
A high ACoS is not always bad. If your TACoS is low and stable, it means your ads are generating organic ranking momentum. Many successful Amazon sellers run campaigns at a high ACoS during product launches to build organic velocity, then reduce spend once rankings are established.
TACoS is the metric that matters most for long-term profitability. If your TACoS is trending down over time while total revenue grows, your advertising is working. A rising TACoS with flat revenue means you are becoming more dependent on paid traffic.
How to Use ACoS and TACoS to Manage Amazon PPC
ACoS tells you whether individual campaigns are efficient. TACoS tells you whether your advertising strategy is working for the business as a whole. Most sellers focus too heavily on ACoS and miss the bigger picture.
A product launch might run at 50% ACoS for the first 8 weeks. That looks bad in isolation. But if your TACoS stays at 12% and total revenue grows 30% month over month, the high-ACoS campaigns are doing their job by pushing your product up in organic search results.
When to Cut Ad Spend vs When to Scale
If your ACoS is above break-even and your TACoS is rising, you are spending money without building organic momentum. That is when to cut. Review your search term reports to find wasted spend on irrelevant terms.
If your ACoS is above target but TACoS is flat or declining while revenue grows, your ads are building organic velocity. That is when to hold or scale cautiously. The overall business is becoming less dependent on ad spend even if individual campaign ACoS looks high.
Tools That Help Lower ACoS
Amazon PPC management tools like Helium 10 and Jungle Scout provide keyword analytics and bid optimisation features that help bring ACoS down. For a complete overview, see our guide to the best AI tools for Amazon FBA sellers.
Frequently Asked Questions
- What is ACoS on Amazon?
- ACoS (Advertising Cost of Sales) is your ad spend divided by your ad-attributed revenue, shown as a percentage. An ACoS of 25% means you spend $25 in ads for every $100 in ad-driven sales. Lower ACoS means more efficient advertising, but what counts as 'good' depends on your profit margin.
- What is TACoS and why does it matter?
- TACoS (Total Advertising Cost of Sales) is your ad spend divided by your total revenue, including organic sales. TACoS gives a more complete picture than ACoS because it shows how advertising affects your entire business. A seller with 40% ACoS but 8% TACoS is in a strong position because most of their revenue comes from organic sales that ads helped build.
- What is a good ACoS for Amazon PPC?
- A good ACoS depends on your profit margin. If your pre-ad margin is 30%, any ACoS below 30% is profitable. Most established Amazon sellers target 15% to 25% ACoS for Sponsored Products. New product launches often run at higher ACoS (40% to 60%) deliberately to build rankings and reviews before optimising for profitability.
- What is a good TACoS for Amazon sellers?
- Most healthy Amazon businesses have a TACoS between 5% and 15%. Below 10% is generally strong. TACoS above 20% suggests heavy dependence on paid traffic. The trend matters more than the number -- a TACoS that decreases over time while total revenue grows means your organic sales are picking up momentum from advertising.
- How do I calculate break-even ACoS?
- Break-even ACoS equals your pre-advertising profit margin. If you buy a product for $7, sell it for $20, and Amazon fees are $6, your pre-ad profit is $7 on $20 revenue, giving you a 35% margin and 35% break-even ACoS. Any ACoS below 35% generates profit on ad sales. Factor in FBA fees, referral fees, and landed product cost.
- Should I optimise for ACoS or TACoS?
- Optimise for TACoS as your primary metric. ACoS only measures paid performance, while TACoS captures the full impact of advertising on your business. Cutting ad spend to lower ACoS can hurt organic rankings and increase TACoS over time. The goal is to grow total revenue while keeping TACoS stable or declining.
- How does ACoS relate to ROAS?
- ROAS (Return on Ad Spend) is the inverse of ACoS. If your ACoS is 25%, your ROAS is 4x ($1 in ad spend returns $4 in revenue). ROAS = 1 / (ACoS / 100). Amazon Seller Central reports ACoS natively, while Google Ads uses ROAS. This calculator shows both so you can compare across platforms.