ACOS vs TACOS vs break-even ACOS
Direct answer: ACOS is ad spend ÷ ad-attributed sales. TACOS is ad spend ÷ all sales. Break-even ACOS is what is left after COGS and Amazon fees, as a percent of price. Manage bids to break-even ACOS. Watch TACOS to see if ads are buying growth or replacing organic.
The three numbers, in one table
| Metric | Formula | What it actually tells you |
|---|---|---|
| ACOS | Ad spend ÷ ad-attributed sales | How efficiently ads convert. Blind to organic. |
| TACOS | Ad spend ÷ total sales | How much of the whole business is paid traffic. |
| Break-even ACOS | (Price − COGS − Amazon fees − other) ÷ price | The bid ceiling. Above it, the attributed order loses money. |
How to read them this week
- Pull FBA Fee Preview and referral fee for each hero ASIN. That is the Amazon-fee input.
- Run break-even ACOS. That number is the ceiling for target ACOS on that SKU — not a category average you read on a forum.
- Compute TACOS for the last 30 days. If ACOS is flat and TACOS is rising, organic rank is slipping and ads are covering the hole.
- If TACOS is falling while sales hold, harvest is working: paid traffic is handing share back to organic.
A 25% ACOS can be fine. A 25% TACOS usually means a quarter of all revenue is ad spend — often a sign that Page 1 organic has decayed and PPC is masking it.
What a “good” ACOS is
There is no universal good ACOS. A 40% margin SKU can live with a higher ACOS than a 18% margin SKU. If someone quotes “15% is good,” they are not looking at your fee stack. Use the break-even calculator, then bid under that ceiling on exact campaigns.
Amazon can change referral and FBA fees. Recalculate the week a rate card lands — that is what the Updates desk is for — not at the next quarterly review.
FAQ
Is a 25% ACOS good?
Only if it is under that SKU’s break-even ACOS. Category averages are not a target.
Why can ACOS look fine while profit falls?
Because TACOS is rising — ads are replacing organic — or because fees moved and nobody recalculated break-even.
Where do I get Amazon fees?
FBA Fee Preview and the referral fee for the category, per ASIN. Then use the calculator on this site.
← All playbooks · Calculators · Stack · Glossary · Events calendar →