Model Amazon PPC profitability after product cost, seller fees, fulfillment and ad spend with break-even CPA and ROAS.
Editable planning assumptions. Verify current fees against your account, product and platform terms.
The calculator above combines ad performance with the economics of the product being advertised. Enter selling price, landed cost, Amazon fees, fulfillment, returns and campaign assumptions such as clicks, conversion rate or CPC. The summary converts those inputs into estimated profit, ACOS, ROAS, break-even ACOS, break-even CPC and break-even ROAS. This matters because a campaign can look efficient inside an advertising dashboard while still losing money if the product has thin contribution margin before ads. It also lets you test whether a bid is supportable at the conversion rate you actually achieve, instead of copying a CPC benchmark from another product or category.
Amazon Ads defines ACOS as ad spend divided by ad-attributed sales and ROAS as ad-attributed sales divided by ad spend. Break-even values add your product economics to those advertising metrics. They are not Amazon targets and they change as your price, fees, conversion rate or product costs change.
Suppose a product sells for $30. Landed product cost is $8, referral and fulfillment charges total $9, and returns/other costs are modeled at $1. That leaves $12 of pre-ad contribution. The break-even ACOS is therefore 12 ÷ 30 = 40%, while break-even ROAS is 30 ÷ 12 = 2.5×. If a campaign spends $6 to generate one attributed sale, ACOS is 20% and ROAS is 5.0×; the modeled order keeps $6 after ads. At a 10% conversion rate, a simplified break-even CPC is $12 × 10% = $1.20. If conversion rate falls to 5%, the break-even CPC falls to $0.60 even though the product price and fee structure have not changed.
| Metric | Formula | What it answers |
|---|---|---|
| ACOS | Ad spend ÷ ad sales | What share of attributed sales went to ads? |
| ROAS | Ad sales ÷ ad spend | How much attributed revenue came from each ad dollar? |
| Break-even ACOS | Pre-ad contribution ÷ price | How much of sales can ads consume before modeled profit reaches zero? |
| Break-even CPC | Pre-ad contribution × conversion rate | What click cost can the modeled funnel support? |
Metric definitions checked against the Amazon Ads ACOS guide. Attribution windows and reporting rules can affect campaign data.
Divide ad spend by ad-attributed sales and multiply by 100. A $25 spend on $100 of attributed sales is a 25% ACOS.
ROAS divides ad-attributed sales by ad spend. A 25% ACOS corresponds to a 4.0× ROAS.
It is the maximum ad-cost percentage the modeled product contribution can absorb before profit reaches zero.
No universal ACOS target fits every campaign. Margin, objectives, growth stage and customer value can change the trade-off.
A $40 order with $26.50 non-ad costs can spend $13.50 on advertising before modeled profit reaches zero. That is 33.75% break-even ACOS. To keep $6 profit, the allowance falls to $7.50 and target ACOS becomes 18.75%.
Use matched advertising and attributed-revenue data. An ACOS below the break-even ceiling can still miss the desired profit target.
Work through the ACOS example →
Original hypothetical worked example. Read the guide for all assumptions, formulas and exclusions.