Your ACoS only means something next to your real margin. Enter your ad results and product economics to see break-even ACoS, TACoS, ROAS and a clear profit verdict.
| ACoS | ROAS |
|---|---|
| 15% | 6.67x |
| 20% | 5.00x |
| 25% | 4.00x |
| 30% | 3.33x |
Formulas: ACoS = spend ÷ attributed sales; break-even ACoS = pre-ad net margin ÷ price; ROAS = 1 ÷ (ACoS/100); TACoS = spend ÷ total sales.
A low ACoS is not automatically good and a high one is not automatically bad — the reference point is always your own break-even ACoS, which equals the net margin the product earned before ads. If ACoS is below that margin, ad sales add profit; if it is above, those sales lose money even though revenue is rising. Two products with the same 30% ACoS can therefore be profitable on a 45%-margin item and unprofitable on a 20%-margin one.
Sellers often accept a higher ACoS when launching a product, ranking a new listing, or winning repeat buyers, then tighten toward break-even once established. Watch TACoS alongside ACoS: if TACoS keeps climbing while total sales stay flat, ads may be cannibalising organic orders rather than growing the business.
Ad spend ÷ attributed sales. $300 ÷ $1,500 = 20% ACoS.
It equals your pre-ad net margin; below it you profit, above it you lose.
ROAS = 1 ÷ (ACoS/100). 25% ACoS = 4.0 ROAS.
Ad spend ÷ total account sales, showing ads' effect on the whole business.
Break-even ACoS here uses simple per-unit economics and may not include storage over time, coupons, returns, removal fees or fixed overhead. Confirm the full cost picture in Seller Central before judging the account.
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