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Break-even ACoS Calculator

Free tool

Break-even ACoS calculator

Before you argue about bids, you need one number: the ACoS above which every advertised sale costs you money. It is not a benchmark you can borrow from someone else, because it falls out of your own price, your own cost and your own category fee.

Put your figures in. Everything runs in your browser, nothing is sent to us, and nothing is stored.

Your numbers

Everything here comes from your own account. We do not assume a category fee for you, because they differ by category and change over time. Take the percentages from your Seller Central fee schedule.

Per unit, before advertising

Your figures
Price the buyer pays·
GST out·
Net revenue to you·
Marketplace fees·
Product and handling cost·
Contribution before ads·
Margin on net revenue·

What that means for ads

Break-even
Break-even ACoS·
Break-even ROAS·
Ad spend per unit at your target·
Profit per unit at your target·
Verdict at your target·

How to read it

What the output actually tells you

Contribution before ads

What is left from one unit after GST, marketplace fees and everything it costs you to put the product in a box. This is the pot that advertising spends from. If it is negative, no campaign setting rescues it.

Break-even ACoS

Contribution expressed as a percentage of your net revenue. Spend exactly this on ads per sale and you make nothing. Spend more and the sale is subsidised.

Break-even ROAS

The same fact the other way round, because some people think in return rather than cost. If your break-even ACoS is twenty-five percent, break-even ROAS is four.

Profit at your target

What one advertised unit actually leaves you once you hit the ACoS you are aiming for. Useful for sanity-checking a target somebody has handed you.

Honest caveats

Where this number stops being the whole story

  • It is per advertised unit. Advertising also lifts organic rank, and those organic sales are not counted here, which is why TACoS is worth watching next to ACoS.
  • Returns, replacements and reimbursements move the real cost around. Put a realistic provision in the other-costs field rather than leaving it at zero.
  • Referral and closing fees differ by category and change over time. Take them from your own fee schedule in Seller Central, not from a blog post.
  • Running deliberately above break-even can be a reasonable decision during a launch, while you build review volume. It should have a budget and an end date attached.
  • If the contribution is thin before ads, the fix is the offer, the price or the fulfilment method. It is not the campaign.

Next step

Want us to run these numbers across your whole catalogue?

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