Amazon Break-Even ACoS & ROAS Calculator

Free Amazon Profitability Tool

Amazon Break-Even ACoS & ROAS Calculator

Calculate the ACoS and ROAS your product needs to break even, preserve a target profit margin, and support profitable Amazon advertising.

✓ Break-even ACoS and ROAS ✓ Target ACoS and ROAS ✓ No signup required
Product Economics

Enter your unit costs

Enter the average revenue and costs for one unit sold.

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Advertising Targets
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This calculator estimates return costs as a percentage of selling price. Use a blended average if your exact return cost varies.
Your Results

Break-even and target metrics

Below break-even
Profit Before Advertising $16.92 Available contribution per unit
Pre-Ad Profit Margin 42.3% Margin before advertising
Maximum Ad Cost Per Sale $16.92 Estimated ad cost at break-even
Current Equivalent ROAS 4.00x Based on the current ACoS entered
Target ACoS 22.3% To preserve your desired margin
Target ROAS 4.49x To preserve your desired margin
Profit After Current ACoS $6.92 Estimated profit per ad-attributed sale
Margin After Current ACoS 17.3% Estimated margin after advertising

Profitable, but below your target margin

The current ACoS is below break-even but higher than the ACoS needed to preserve your selected profit margin.

What your ACoS and ROAS targets mean

    View unit cost breakdown
    Selling price $39.99
    Product cost -$9.50
    Referral fee -$6.00
    Fulfillment fee -$4.87
    Inbound shipping -$0.75
    Storage and other costs -$0.35
    Return allowance -$1.60
    Profit before advertising $16.92

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    How It Works

    Break-even ACoS and ROAS formulas

    Break-Even ACoS

    Profit Before Ads ÷ Selling Price

    The percentage of ad-attributed revenue that can be spent before estimated product profit reaches zero.

    Break-Even ROAS

    Selling Price ÷ Profit Before Ads

    The minimum ad-attributed revenue required for each advertising dollar before estimated product profit reaches zero.

    Target ACoS

    Allowable Ad Cost ÷ Selling Price

    The maximum ACoS that preserves the profit margin selected in the calculator.

    Target ROAS

    Selling Price ÷ Allowable Ad Cost

    The minimum ROAS that preserves the profit margin selected in the calculator.

    ACoS and ROAS Targets

    Why break-even is not always the right target

    Break-even ACoS and ROAS show the point where estimated product profit reaches zero. They represent limits, not necessarily the targets you should use for normal campaign management.

    A sustainable target should also preserve enough margin for overhead, operating expenses, taxes, and future growth. That is why this calculator provides both break-even metrics and target metrics based on your desired profit margin.

    Calculate your complete Amazon product profit

    ACoS and ROAS are inverse metrics

    10% ACoS 10.00x ROAS
    20% ACoS 5.00x ROAS
    25% ACoS 4.00x ROAS
    40% ACoS 2.50x ROAS
    50% ACoS 2.00x ROAS
    Frequently Asked Questions

    Break-even ACoS and ROAS FAQs

    What is break-even ACoS?

    Break-even ACoS is the estimated percentage of ad-attributed revenue you can spend on advertising before the profit from that sale reaches zero. It is based on your selling price and non-advertising costs.

    What is break-even ROAS?

    Break-even ROAS is the minimum ad-attributed revenue needed for each advertising dollar before estimated profit reaches zero. If your break-even ACoS is 25%, the equivalent break-even ROAS is 4.00x.

    How are ACoS and ROAS related?

    ACoS and ROAS are inverse measurements. Divide one by the other using decimal form. For example, a 20% ACoS equals a 5.00x ROAS, while a 4.00x ROAS equals a 25% ACoS.

    Should I use break-even ACoS as my campaign target?

    Usually not for ongoing management. Operating exactly at break-even leaves no product-level profit for overhead, taxes, or other expenses. A target ACoS below break-even, or target ROAS above break-even, can preserve a desired profit margin.

    Does this calculator include every Amazon expense?

    It includes the costs entered above but does not automatically include overhead, chargebacks, taxes, software, agency fees, or other business expenses. Add variable unit expenses to the “Storage and Other Unit Costs” field when appropriate.

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