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Glossary

Break-even ACoS

The ACoS at which a paid sale earns exactly nothing. Your margin before advertising, expressed as a share of price.

FormulaBreak-even ACoS = (price − cost of goods − Amazon fees) ÷ price × 100

Definition

Every ACoS target starts here. Amazon fees include the referral fee (usually 8 to 15% of price) and FBA fulfilment fees; add storage, returns and shipping to Amazon for a precise figure. Products with a high break-even ACoS can afford aggressive advertising; products with a low one need organic sales to be profitable.

Launches deliberately run above break-even to buy rank and reviews; mature products should sit at roughly half their break-even ACoS or lower, so that contribution margin remains after advertising.

Example

Price 49.90 €, COGS 12 €, referral fee 7.49 €, FBA 5.60 €. Margin 24.81 € → break-even ACoS 49.7%. Target ACoS for a mature product: 20 to 25%.

How we use it

We calculate break-even per ASIN from your real fee and cost data in the first week and derive every bid target from it.

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What is your break-even ACoS?

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€
€
€

Pre-ad margin

€13.29

Break-even ACoS

44.3 %

Our target for you

≤ 10 %

FAQ

Common questions

Related terms

Should ACoS targets be the same for all products?

No. Margin, lifecycle stage and the share of repeat purchases differ per product. One account-wide target starves good products and overfunds bad ones.

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