ACOS Calculator
At RootAMZ, we believe in equipping Vendors, Sellers & Manufacturers with powerful tools that provide actionable insights. Our easy to use calculators help you analyse performance metrics, optimise campaigns & make data driven decisions that drive real marketplace success.
Advertising Cost of Sales (ACoS) Calculator
Monitor & enhance the cost-effectiveness of your advertising efforts with accuracy.
Use our ACoS Calculator to:
- Determine how much you’re spending on ads to generate sales
- Evaluate ad efficiency across campaigns
- Guide bid adjustments & budget allocation
Formula Used: ACoS = (Ad Spend ÷ Sales) × 100
Perfect for sellers managing Ads & PPC or Walmart Ads, this tool empowers smarter ad decisions.
RootAMZ ACOS Calculator
Return on Ad Spend measures how much revenue you generate for every dollar spent on advertising.
Your ACOS Results
Industry Benchmarks
Understanding of ACoS
Advertising Cost of Sales (ACoS) is a key metric used to evaluate the efficiency of your Amazon sponsored ad campaigns. It represents the percentage of your ad spend relative to the revenue generated through advertising. Simply put, ACoS helps you understand how much you’re spending to make each advertising-driven sale.
For example, if you spend $2 on ads & earn $25 in sales, with a profit of $5, your actual profit after ad spend would be $3. As a percentage, if your product margin is 35% & your ACoS is 30%, your net margin drops to just 5%.
Important note: If your ACoS exceeds your profit margin, your ad campaign becomes unprofitable. Maintaining ACoS below your margin is critical for sustainable growth.
ACOS
How to Calculate ACoS?
You can calculate ACoS using this simple formula:
ACoS is calculated as follows: (Total Ad Spend / Total Ad Sales) × 100.
Example Calculation:
- Ad Spend: $25
- Ad Sales: $100
- ACoS: (25 ÷ 100) × 100 = 25%
What Is Break-Even ACoS?
Your break-even ACoS is the point where your ad cost equals your profit margin. At this level, you’re not losing money, but you’re not making any profit either.
To estimate break-even ACoS, use:
Break-Even ACoS = Selling Price – Amazon Fees – Cost of Goods Sold
Staying below your break-even ACoS ensures your campaigns remain profitable.
What Is a Good ACoS?
There’s no universal “good” ACoS. It varies by industry, product category & competition. However, a commonly accepted target for many sellers is 25% or lower, with 30% as the upper limit for acceptable performance.
A lower ACoS indicates greater efficiency in your ads, leading to increased sales at reduced costs.
ACoS vs. ROAS: What’s the Difference?
ACoS (Advertising Cost of Sales) & ROAS (Return on Ad Spend) are both metrics that assess advertising expenditure against revenue, but they offer different insights.
ACoS focuses on how much you spend to earn revenue (lower is better).
ROAS shows how much revenue you generate per dollar spent (higher is better).
Example:
- Let Ad Spend = $25
- And Ad Revenue = $100
- Then the value of ACoS = 25%
- The value of ROAS = 4.0 (or 400%)
Both metrics are essential for measuring the profitability & efficiency of your ad campaigns.
To gain a deeper understanding of ROAS (Return on Ad Spend), check out our ROAS calculator.
