Free tool

Break-even ACoS calculator for Amazon India

Break-even ACoS is the ACoS at which an ad sale makes exactly zero profit. It equals your profit margin before advertising: selling price minus cost of goods and marketplace fees, divided by price. Enter those numbers for one product and the calculator returns its margin and break-even ACoS, the ceiling every target ACoS and bid should sit under.

Formula
Break-even ACoS = (price − COGS − fees) ÷ price × 100
Fees to include
Referral fee, closing fee, shipping or FBA fee
GST
Amazon charges 18% GST on its fees; include it
Target ACoS
Usually set below break-even to leave a profit

Calculate break-even ACoS

Use your own numbers per unit. Referral fee is a percentage of the selling price; closing and shipping fees are fixed rupees per unit. Enter fees inclusive of GST for a margin that matches your settlement.

Marketplace fees: –Profit before ads: –Profit margin / break-even ACoS: –Break-even ROAS: –

Worked example: a product sells for ₹999 and costs ₹400 to make and land. Suppose the referral fee for its category is 15% (₹150) and closing plus shipping comes to ₹100, so fees total ₹250. Profit before ads is 999 − 400 − 250 = ₹349, which is a 35% margin. Break-even ACoS is 35%: an ad sale at 35% ACoS spends ₹349 to earn ₹349. Break-even ROAS is 999 ÷ 349 = 2.86x.

The 15% and ₹100 above are placeholders. Amazon India's referral fee varies by category and price band, and closing and shipping fees depend on the fulfilment channel and weight, so read them from your own fee preview or settlement report. Blooprint's Amazon seller fee calculator on blooprint.in works through the fee schedule; this page only needs the totals.

From break-even to target ACoS

Break-even is the ceiling, not the target. The target depends on what the product is for right now.

StageTarget ACoSWhy
Launch, first 4 to 8 weeksAt or above break-evenBuying reviews, rank and sales history; loss is an investment
GrowingBreak-even minus 5 to 10 pointsProfitable on ads while still pushing volume
Mature, strong organic rankWell below break-evenAds protect the position; most sales are organic
ClearanceUp to break-evenAny positive contribution beats holding stock

The same product can move through all four stages, so revisit the target every quarter, and every time the price or fee changes.

What people get wrong

  • Forgetting GST on fees: Amazon's referral, closing and shipping fees attract 18% GST, which reduces the margin by several points on a low-priced item
  • Using the list price when most units sell at a discount or coupon price
  • Ignoring returns: a category with 10% returns needs the return cost spread across the units that stay sold
  • Treating break-even as the target, which leaves no profit on the ad sale at all
  • Setting one target for the whole account when margins differ by product

Set targets per campaign, then filter against them

Once each product has a break-even and a target, the job is checking every keyword against its campaign's target and moving bids accordingly. BlooprintAI lets you set a target ACoS per campaign or for the account, filter keywords that are above it, and change their bids in bulk with a log.

Frequently asked questions

What is break-even ACoS?

The ACoS at which an ad-attributed sale makes zero profit. It equals your profit margin before advertising: (price − cost of goods − marketplace fees) ÷ price × 100. Above it, each ad sale loses money.

How do I find my Amazon India fees for the calculator?

Use the fee preview in Seller Central or a recent settlement report. Referral fee is a percentage of the selling price and varies by category; closing and shipping fees are per unit. Add 18% GST to all of them.

Should my target ACoS equal break-even ACoS?

Only during a launch or clearance. For a product you want to profit from, set the target below break-even so the ad sale itself contributes margin.

Does break-even ACoS apply to Flipkart?

Yes, the margin logic is identical, but Flipkart reports ROI instead of ACoS. Break-even ROI is price ÷ profit before ads, so a 35% margin means break-even ROI of 2.86.

What if my break-even ACoS is under 10%?

Paid ads will struggle to be profitable on that product alone. Either raise the price, lower cost, or advertise it only where it lifts organic sales or a higher-margin product in the same listing.

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