What is Break-even ACoS?
Break-even ACoS is the highest ACoS you can run without losing money. It equals your profit margin before advertising.
Example
If a $40 product leaves $10 of profit before ads, your break-even ACoS is 25% (and break-even ROAS is 4).
Why it matters
It turns a vague goal (“lower ACoS”) into a hard line for every product.
Calculate it: Break-Even ROAS Calculator
The ROAS and ACoS you need to profit
Flashcard
What is break-even ACoS?
Tap to reveal the answerBreak-even ACoS is the highest ACoS you can run without losing money. It equals your profit margin before advertising.
Related terms
ACoS
ACoS is the share of ad-driven sales spent on advertising: ad spend ÷ ad sales × 100. It is the main efficiency metric in Amazon Sponsored Products.
ROAS
ROAS is the revenue earned for every dollar spent on ads: ad sales ÷ ad spend. It is the inverse of ACoS.
Profit margin
Profit margin is profit as a percentage of the selling price: (price − cost) ÷ price × 100.
Read more in our guide: ACoS vs ROAS: What’s a Good Number for Your Ads?