Free tool

Target ACoS calculator for Amazon ads

Target ACoS in Amazon ads is your break-even ACoS minus the profit you want to keep from each ad sale. Break-even ACoS equals your margin before advertising. Enter your margin and the profit percentage you want, and this calculator returns target ACoS, the matching ROAS and Flipkart ROI, so every bid and budget can be set against one number.

Formula
Target ACoS = margin before ads − target profit %
Break-even ACoS
Margin before ads
As ROAS
100 ÷ target ACoS
Used in
Max CPC = price × CVR × target ACoS

Calculate target ACoS

Margin before ads is selling price minus cost of goods, referral and closing fees and shipping or FBA fees, as a percentage of price. The break-even ACoS calculator works it out if you do not have it.

Target ACoS: –Target ROAS: –Break-even ACoS: –

Worked example: a ₹999 product has ₹350 left after cost and fees, a 35% margin. You want to keep 10% of the price (₹100) as profit on each ad sale. Target ACoS is 35 − 10 = 25%, target ROAS 4x. On Flipkart the same target is an ROI of 4.

Check the result against your conversion rate: at 25% target ACoS, ₹999 price and 8% CVR, the maximum bid is 999 × 8% × 25% = ₹19.98. If keywords cost more than that, the target cannot be met at current CVR.

Target ACoS by goal

Not every product should aim for the same profit. The same margin supports different targets depending on what the ads are for.

GoalTarget ACoSExample at 35% margin
Launch: buy rank and reviewsAt or above break-even, for a set period35 to 45%
Growth: hold rank, grow salesA little under break-even28 to 32%
Profit: mature productWell under break-even15 to 25%
Brand defence: branded keywordsWhatever keeps competitors off your listingOften under 10% anyway

Write the target and the end date for any launch target down. A launch ACoS that is never reviewed becomes the permanent ACoS.

Common mistakes

  • Using a round number such as 30% for every product regardless of margin
  • Forgetting GST on fees when working out the margin, which overstates break-even
  • Setting targets per account instead of per product or campaign
  • Ignoring TACoS: a higher ACoS can be worth it if organic sales rise with it

Target ACoS in the software

BlooprintAI lets you store a target ACoS per campaign or for the whole account and filter every keyword against it, so 'ACoS above target with more than 20 clicks' is a saved view rather than a spreadsheet. You then lower those bids in bulk after a summary; nothing is changed automatically.

Frequently asked questions

How do I calculate target ACoS?

Target ACoS = margin before ads − the profit % you want to keep. A 35% margin with 10% profit kept gives a 25% target ACoS.

What is the difference between target ACoS and break-even ACoS?

Break-even ACoS is the ACoS at which an ad sale makes zero profit, equal to your margin before ads. Target ACoS is lower by the profit you want to keep.

What target ACoS should a new product use?

Often at or slightly above break-even for a fixed launch period, to buy rank and reviews. Set an end date and lower the target once organic sales build.

How does target ACoS relate to Flipkart ROI?

Flipkart ROI = 100 ÷ ACoS. A 25% target ACoS is a target ROI of 4.

Should I use one target ACoS for the whole account?

No. Margins differ by product, so set targets per product or campaign, and a lower one for branded keywords.

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