Amazon ACOS Calculator

ACOS (Advertising Cost of Sales) is the percentage of ad spend relative to ad sales. It is calculated as (Ad Spend / Ad Sales) x 100. For example, if you spend $25 on ads and generate $100 in ad sales, your ACOS is 25%. A lower ACOS generally means more profitable advertising.

The average ACOS across Amazon categories is around 25-30%. However, a "good" ACOS depends on your profit margins and business goals. For product launches, a higher ACOS (40-60%) may be acceptable to gain visibility. For established products, most sellers target an ACOS below 25%. Break-even ACOS equals your pre-ad profit margin.

ACOS measures ad spend as a percentage of ad sales only. TACoS (Total Advertising Cost of Sales) measures ad spend as a percentage of total revenue, including organic sales. TACoS gives a more holistic view of how advertising impacts your overall business performance.

ROAS (Return on Ad Spend) is the inverse of ACOS. It measures revenue generated per dollar of ad spend. ROAS = Ad Sales / Ad Spend, or equivalently, ROAS = 1 / (ACOS / 100). For example, a 25% ACOS equals a 4x ROAS, meaning you earn $4 for every $1 spent on ads.

Key strategies include: optimizing keyword targeting by adding negative keywords, improving your listing quality (images, bullets, A+ content) to increase conversion rates, using day-parting to bid higher during peak conversion hours, structuring campaigns with a keyword funnel approach, and using AI-powered tools like AdFixer to automate bid optimization.

AdFixer uses AI-powered bid optimization, automated day-parting, keyword funnel management, and search term harvesting to continuously improve your campaigns. On average, AdFixer users see a 42% reduction in ACOS within the first 90 days while maintaining or growing sales volume.