ACoS vs ROAS: What’s a Good Number for Your Ads?

Updated October 8, 2026 · 5 min read

There is no universal “good ACoS”. The right target depends on your margin — here is how to work out yours.

Definitions

  • ACoS = ad spend ÷ ad sales × 100 (lower is better).
  • ROAS = ad sales ÷ ad spend (higher is better).
  • TACoS = ad spend ÷ total sales × 100 — includes organic sales.

They are two views of the same thing: ROAS = 100 ÷ ACoS. A 25% ACoS is a ROAS of 4.

Your break-even point

Your break-even ACoS equals your profit margin before advertising. If a $40 product leaves $10 after product cost, fees and shipping, break-even ACoS is 25% and break-even ROAS is 4.

Run the numbers in the Break-Even ROAS Calculator, then set a target a few points below break-even to keep a profit.

When running above break-even can make sense

  • Launching a new product to build reviews and ranking — for a limited time and budget.
  • When TACoS is falling, meaning ads are lifting organic sales too.
  • For products with strong repeat purchases, where LTV justifies a higher acquisition cost.

Quick checklist

  • Know your break-even ACoS for every advertised product.
  • Track TACoS monthly, not just ACoS.
  • Cut or fix keywords that spend without converting.

Try the Break-Even ROAS Calculator

The ROAS and ACoS you need to profit

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Test yourself

Tap a card to reveal the answer. More flashcards ›

Question

What is ACoS (Advertising Cost of Sales)?

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Answer

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.

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Question

What is ROAS (Return on Ad Spend)?

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Answer

ROAS is the revenue earned for every dollar spent on ads: ad sales ÷ ad spend. It is the inverse of ACoS.

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Question

If your ACoS is 25%, what is your ROAS?

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Answer

4 (4×). ROAS = 100 ÷ ACoS.

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