Calcmatic

Amazon PPC/ACoS Calculator

Calculate your Amazon advertising performance with ACoS, TACoS, ROAS, and break-even ACoS metrics. Optimize your PPC campaigns with data-driven insights.

Campaign Data

Campaign Metrics

$

Total amount spent on Amazon PPC ads

$

Revenue generated from ad-attributed sales

$

All revenue including organic and paid sales

Number of times your ad was shown

Number of clicks received on your ads

Number of sales generated from ads

Product Costs

$

Average selling price per unit

$

Product cost + shipping to Amazon

$

Total Amazon fees per unit (referral + fulfillment)

Use our Amazon Profit Calculator to calculate exact fees for your product

Referral fees range from 8-20% depending on category, plus FBA fulfillment fees based on size/weight

Your Metrics

Good Campaign Performance

Your ACoS is 0.0% with a ROAS of 4.00x. Your campaigns are profitable with room for optimization.

ACoS (Advertising Cost of Sale)

0.0%

Ad spend ÷ Ad revenue

TACoS (Total ACoS)

0.0%

Ad spend ÷ Total revenue

ROAS (Return on Ad Spend)

4.00x

Ad revenue ÷ Ad spend

Break-Even ACoS

0.0%

Maximum profitable ACoS

Your break-even ACoS is 0.0%. Your current ACoS is below break-even - you're profitable!

Campaign Metrics

Cost Per Click (CPC)

$0

Average cost per click

Click-Through Rate (CTR)

0.0%

Clicks ÷ Impressions

Conversion Rate

0.0%

Conversions ÷ Clicks

Cost Per Acquisition (CPA)

$0

Ad spend ÷ Conversions

Profitability

Profit from Ad Sales

$0

After COGS, fees, and ad spend

Ad Profit Margin

0.0%

Profit ÷ Ad revenue

Total Profit

$0

Organic + Ad sales profit

Overall Profit Margin

0.0%

Profit ÷ Total revenue

Revenue Split

Organic Revenue

$0

0.0% of total

Organic Sales %

0.0%

High ad dependency

Optimization Recommendations

  • Less than 50% of your sales are organic. Build reviews and optimize listings to reduce ad dependency.

Amazon PPC & ACoS Calculator: Master Your Amazon Advertising Strategy

Understanding Amazon PPC Advertising

Amazon Pay-Per-Click (PPC) advertising is the primary way sellers gain visibility in Amazon's crowded marketplace. With millions of products competing for customer attention, organic rank alone is rarely enough - especially for new products. PPC allows you to bid on keywords and product placements, paying only when shoppers click your ad.

However, running profitable Amazon PPC campaigns requires understanding multiple interconnected metrics. ACoS (Advertising Cost of Sale) is the headline metric, but TACoS, ROAS, CPC, conversion rate, and click-through rate all tell important parts of your campaign story. Without monitoring these metrics together, you're flying blind.

This calculator helps you track all your key PPC metrics in one place, identify profitability issues, and get specific recommendations for improvement. Whether you're launching a new product or optimizing mature campaigns, understanding your advertising efficiency is critical for Amazon success.

Final Thoughts

Amazon PPC is not optional for most sellers - it's a required investment to gain initial traction and maintain visibility. However, profitable PPC requires constant monitoring and optimization. Too many sellers set campaigns and forget them, wondering why they're losing money.

The metrics this calculator tracks - ACoS, TACoS, ROAS, CTR, conversion rate, CPC, and CPA - work together to tell your campaign story. High ACoS might seem bad, but if TACoS is low, your organic sales are strong. Low CPC is great unless your conversion rate is terrible. Every metric provides context for the others.

Use this calculator weekly to track campaign performance, identify optimization opportunities, and ensure your advertising investment generates actual profit. Successful Amazon sellers don't just spend on ads - they systematically test, refine, and scale what works while ruthlessly cutting what doesn't. Data-driven decisions win on Amazon.

Additional Frequently Asked Questions

What is a good ACoS for Amazon products?

A good ACoS depends on your profit margin and product lifecycle. During product launch, 30-50% ACoS is acceptable to build reviews and organic rank. For mature products, target 15-25% ACoS for healthy profitability. Your ACoS should always be below your break-even ACoS (which equals your profit margin before advertising). High-margin products can sustain higher ACoS, while low-margin products need tight ACoS control. The average ACoS across Amazon sellers is approximately 25-30% in 2025, but optimize based on your specific margins rather than industry averages.

How do I calculate my break-even ACoS?

Break-even ACoS equals your profit margin before advertising costs. Formula: (Sale Price - COGS - Amazon Fees) ÷ Sale Price × 100. For example, if you sell a product for $50, your COGS is $15, and Amazon fees are $12.50, your break-even ACoS is ($50 - $15 - $12.50) ÷ $50 = 45%. Any ACoS above 45% loses money. Your target ACoS should be 5-10% below break-even to ensure profitability after accounting for ad spend. Use our Amazon Profit Calculator to determine exact fees and margins for your products.

What's the difference between ACoS and TACoS?

ACoS (Advertising Cost of Sale) measures ad spend as a percentage of ad-attributed revenue only. TACoS (Total Advertising Cost of Sale) measures ad spend as a percentage of your total revenue including organic sales. ACoS shows advertising efficiency, while TACoS reveals ad dependency. Example: $500 ad spend generates $2,000 in ad sales (25% ACoS), but total revenue is $3,500 including $1,500 in organic sales, so TACoS is 14.3%. Low TACoS indicates strong organic presence. High TACoS means over-reliance on ads and weak organic rank.

How can I lower my ACoS?

Lower ACoS by: 1) Adding negative keywords weekly to eliminate wasted spend on irrelevant searches, 2) Lowering bids on keywords with high ACoS and low conversion rates, 3) Increasing bids on keywords converting well to capture more profitable traffic, 4) Improving product listings (images, reviews, bullet points) to increase conversion rate, 5) Targeting long-tail keywords with lower competition and CPCs, 6) Using exact match campaigns for proven converting keywords, 7) Optimizing bid adjustments for Top of Search placement which converts best, 8) Pausing or archiving campaigns with consistently poor performance. Most sellers can reduce ACoS 20-40% through systematic optimization over 2-3 months.

What is ROAS and how does it relate to ACoS?

ROAS (Return on Ad Spend) measures revenue generated per dollar of ad spend. While ACoS shows cost as a percentage of revenue, ROAS shows revenue as a multiple of cost. They're mathematically inverse: ACoS = 1 ÷ ROAS × 100. Examples: 4x ROAS = 25% ACoS, 5x ROAS = 20% ACoS, 3x ROAS = 33% ACoS. Some sellers prefer ROAS because it directly shows return - 4x ROAS means every $1 spent generates $4 in sales. Target ROAS depends on break-even ACoS. If break-even is 30% ACoS (3.33x ROAS), target 4-5x ROAS for profitability. Both metrics tell the same story from different perspectives.

What is a good conversion rate for Amazon PPC?

Amazon PPC conversion rates typically range from 9-15%, with 10-12% being average for most categories in 2025. Excellent conversion rates are 15%+ (1 in 7 clicks converts). Conversion rate below 10% indicates listing issues - insufficient reviews, uncompetitive pricing, poor product images, or weak bullet points. To improve conversion rate: accumulate more reviews (target 50+ reviews for mature products), optimize your main image with lifestyle shots showing product in use, rewrite bullet points to focus on benefits not just features, add A+ content with comparison charts and additional images, ensure your price is competitive within your category, and respond to negative reviews professionally.

How much should I spend on Amazon PPC?

Amazon PPC budget depends on product price, competition, and business goals. For product launch, budget $500-1,000 minimum to generate meaningful data and initial sales velocity. Allocate 20-40% of projected revenue to PPC during launch phase (first 60-90 days). For mature products, 10-20% of revenue is typical for ongoing advertising. Example: If targeting $10,000 monthly revenue, budget $1,000-2,000 for PPC. Start conservative, track ACoS and ROAS closely, and scale budget on campaigns achieving target profitability. Never set-and-forget - review campaign performance weekly and reallocate budget from underperformers to winners.

What's the average CPC on Amazon in 2025?

Average CPC (Cost Per Click) on Amazon is $0.82-$1.14 in 2025, with $1.04 as the median. However, CPCs vary significantly by category and keyword competitiveness. Low-competition niches like books and stationery average $0.50-1.00 CPC. Medium-competition categories like home & kitchen average $0.80-1.20. High-competition categories like electronics and beauty range from $1.00-1.50. Supplements and health categories can exceed $1.50-6.00+ CPC due to extreme competition. Broad 2-3 word keywords have higher CPCs than long-tail 4-5 word keywords. Monitor your CPC against category averages and prioritize long-tail keywords if your CPC consistently exceeds $1.50.

Should I use automatic or manual targeting?

Use both automatic and manual targeting for comprehensive coverage. Start new products with automatic campaigns to discover which keywords Amazon associates with your product and gather conversion data. Run automatic for 2-4 weeks, then mine the search term report for high-converting keywords. Create manual campaigns targeting these proven keywords with exact and phrase match. Keep automatic campaigns running at lower budgets for ongoing keyword discovery. Experienced sellers allocate 20-30% of budget to automatic for discovery and 70-80% to manual campaigns for precision targeting of profitable keywords. This hybrid approach balances exploration and exploitation.

What are negative keywords and why do they matter?

Negative keywords prevent your ads from showing for irrelevant searches, eliminating wasted ad spend. Add search terms as negatives when they: generate clicks but no conversions, contain wrong buyer intent ("free," "DIY," "how to make"), reference competitors' brands, or describe variations you don't sell (wrong colors, sizes, materials). Example: If selling yoga mats, add negatives like "yoga mat bag," "yoga mat cleaner," "cheap yoga mat" if targeting premium buyers. Review search term reports weekly and add 5-10 new negatives per campaign. Most sellers reduce ACoS 10-20% through aggressive negative keyword management within the first month.

How long does it take for Amazon PPC campaigns to become profitable?

New campaigns typically require 2-4 weeks to generate enough data for optimization decisions. During launch phase (first 60-90 days), expect high ACoS (30-50%) as you build reviews and organic rank - this is investment, not sustainable profitability. As organic rank improves and you optimize campaigns through negative keywords, bid adjustments, and keyword refinement, ACoS should decrease to target levels (15-25%) by month 3-4. Mature products with 50+ reviews and strong organic rank can achieve profitable ACoS within 2-3 weeks of campaign launch. Expect to refine campaigns continuously - Amazon PPC is never "done," but rather an ongoing optimization process.

What is a good TACoS percentage?

Excellent TACoS is under 10%, indicating strong organic presence with ads playing a supplementary role. Good TACoS is 10-15%, showing healthy balance between organic and paid sales. High TACoS of 15-25% indicates heavy ad dependency - work on improving organic rank through reviews and SEO optimization. TACoS above 25% is unsustainable, meaning most sales are ad-driven with weak organic performance. TACoS naturally decreases as products mature. New products might have 20-30% TACoS during launch while building momentum. Monitor TACoS trend over time - it should decline as organic sales grow. If TACoS remains elevated months after launch, your listing isn't converting organically.

How do I optimize for Top of Search placement?

Top of Search placement (first page, above the fold) converts 2-3x better than other placements but costs more. Optimize by: 1) Increasing placement bid adjustments 50-100% specifically for Top of Search in campaign settings, 2) Focusing on high-intent keywords where customers are ready to buy, 3) Ensuring your listing (images, price, reviews) is competitive to capitalize on premium placement, 4) Monitoring conversion rates by placement - only increase Top of Search bids if it actually converts better for your product, 5) Starting with 50% adjustment, tracking performance for 1-2 weeks, then increasing incrementally if profitable. Top of Search is expensive, but captures customers at highest purchase intent.