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Glossary · Metrics & formulas

What is ACoS on Amazon?

Advertising cost of sales Said "ay-coss". Amazon writes it ACOS.

Definition

ACoS (advertising cost of sales) is the percentage of your ad-driven sales that you spend on Amazon ads: ad spend divided by ad sales, times 100. An ACoS of 25% means you spent $25 on ads for every $100 of sales those ads brought in. The lower the ACoS, the cheaper each ad sale.

  • Reviewed by the Amplivus strategy team
  • Updated Oct 3, 2026
  • 5 min read
On this page
  1. Why ACoS matters
  2. Who uses ACoS
  3. How ACoS works
  4. Where you find ACoS on Amazon
  5. ACoS formula and example
  6. What is a good ACoS?
  7. ACoS vs TACoS, ROAS and break-even ACoS
  8. How to lower ACoS without losing sales
  9. Common ACoS mistakes
  10. Authoritative resources
  11. Frequently asked questions

In short

  • ACoS = ad spend ÷ ad sales × 100. It measures how efficiently your ads turn spend into sales.
  • It only counts sales credited to ads, so it says nothing about organic sales. TACoS covers those.
  • A good ACoS is one below your break-even ACoS, which equals your margin before ad costs.
  • Lower is not always better: a very low ACoS can mean you are missing sales you could afford to buy.

Why ACoS matters

ACoS is the quickest way to see whether your ad spend is paying for itself. Because it is a ratio, you can compare a $50 campaign with a $50,000 one, or one keyword with another, on the same scale.

  • It shows profit or loss per ad sale. Put ACoS next to your margin and you know straight away whether each ad-driven sale makes or loses money.
  • It points to waste. A keyword or product with an ACoS far above the rest of the account is usually where the wasted spend is.
  • It guides bids. Most bid changes, by hand or by rule, aim to move ACoS toward a target.
  • It is the number Amazon shows first. ACOS sits in the main columns of Campaign Manager, so it is the metric most teams talk about.

Who uses ACoS

Everyone who touches Amazon advertising reads ACoS, but each role reads it for something different.

WhoWhat they use ACoS forHow often
PPC manager or agencyRaising and cutting bids, adding negatives, judging keywords and campaignsWeekly, per keyword
Brand owner or founderChecking that advertising pays for itself and setting targets per productMonthly
Finance teamFolding ad cost into product profit and budgetsMonthly or quarterly
Product or launch managerSetting a time-limited ACoS above break-even to build rank for a new productWeekly during a launch

How ACoS works

ACoS links two numbers Amazon tracks for every campaign: what you paid for clicks and what those clicks sold.

  1. 01
    A shopper clicks your ad

    You pay the cost per click set by the auction. That cost adds to ad spend.

  2. 02
    The shopper buys within the attribution window

    Sponsored Products credits sales made within 7 days of a click for sellers (14 days for vendors); Sponsored Brands and Sponsored Display use 14 days.

  3. 03
    Amazon credits the sale to the ad

    The order value is added to ad sales for that campaign, ad group, keyword and product.

  4. 04
    ACoS is worked out

    Ad spend divided by ad sales, times 100, for whatever level and date range you are looking at.

Because sales keep arriving for up to 14 days after a click, ACoS for the last week or two looks higher than it will end up. Judge it on a closed date range.

Where you find ACoS on Amazon

WhereWhat you seeGood for
Amazon Ads console, Campaign ManagerACOS column for campaigns, ad groups, keywords and targetsDay-to-day checks and bid changes
Amazon Ads reportsSpend and sales by search term, target, placement and productFinding wasted spend and new keywords
Bulk operations filesSpend and sales per keyword and target in a spreadsheetChanging many bids at once
Seller CentralNo ACoS; Business Reports show total salesWorking out TACoS alongside ACoS

ACoS formula and example

The formula is the same at every level, from one keyword to the whole account.

ACoS = Ad spend ÷ Ad sales × 100ACoS = 100 ÷ ROAS
ItemValueHow
Ad spend$1,200From Campaign Manager, last 30 days
Ad sales$4,000Same campaigns, same dates
ACoS30%1,200 ÷ 4,000 × 100
ROAS3.334,000 ÷ 1,200
Margin before ads32%Price $40, costs before ads $27.20
VerdictSmall profit30% ACoS is 2 points under the 32% break-even

What is a good ACoS?

There is no good ACoS in general, only a good ACoS for a given margin and goal. The same 30% ACoS loses money on a product with a 25% margin and makes money on one with a 40% margin. Compare ACoS with your break-even ACoS, then decide what the product needs.

SituationACoS against break-evenWhat it meansNext move
Room to growWell belowAd sales are very profitable, and you may be missing salesRaise bids on searches that sell; add new keywords
On targetBelow, near your targetAds make the profit you plannedHold; keep cutting waste
Investing for rankAbove, on purposeAd sales lose money to build organic rankSet an end date and a target, then step bids down
Losing moneyAbove, with no planEvery ad sale costs you moneyAdd negatives, lower bids, fix the listing

Set a target ACoS per product: break-even ACoS minus the profit you want to keep.

ACoS vs TACoS, ROAS and break-even ACoS

MetricFormulaCounts organic sales?Answers
ACoSAd spend ÷ Ad sales × 100NoHow efficient are my ads?
TACoSAd spend ÷ Total sales × 100YesWhat do ads cost against the whole business?
ROASAd sales ÷ Ad spendNoHow much comes back per $1? (100 ÷ ACoS)
Break-even ACoSMargin before ad costsn/aWhat is the most ACoS I can afford?

How to lower ACoS without losing sales

Cutting every bid lowers ACoS, and usually sales with it. These moves remove waste instead.

Common ACoS mistakes

  • Judging the last few days. Sales are still being credited for up to 14 days, so recent ACoS looks worse than it is.
  • One target for the whole account. Margins differ by product, so break-even ACoS does too.
  • Chasing the lowest ACoS. A very low ACoS often means bids are too low to win the searches that would sell profitably.
  • Ignoring TACoS. Pausing a high-ACoS campaign can cut total sales by more than it saves, if those ads were holding organic rank.
  • Comparing across categories. A 40% ACoS can be fine for a high-margin product and a disaster for a low-margin one.

Authoritative resources

Frequently asked questions

What does ACoS stand for?
Advertising cost of sales. It is the share of ad-driven sales you spend on Amazon ads, shown as a percentage.
How do you calculate ACoS?
Divide ad spend by ad sales and multiply by 100. $1,200 of spend that brought in $4,000 of ad sales is a 30% ACoS.
What is a good ACoS on Amazon?
One below your break-even ACoS, which equals your margin before ad costs. With a 32% margin, a 30% ACoS makes a little money and a 35% ACoS loses some. Subtract the profit you want to keep to get your target.
Is a lower ACoS always better?
No. A very low ACoS can mean your bids are too low to win searches that would sell at a profit. If ACoS is far below break-even, test higher bids on your best searches and watch total sales.
What is the difference between ACoS and TACoS?
ACoS divides ad spend by ad sales. TACoS divides ad spend by total sales, ad and organic, so it shows whether advertising is growing the whole business.
Why is my ACoS so high?
Usually searches that click but do not sell, bids set above what a click is worth, a listing that does not convert, or a date range that is still collecting attributed sales. The search term report is the first place to look.
Where can I see ACoS in Amazon?
In the Amazon Ads console, Campaign Manager shows an ACOS column for campaigns, ad groups, keywords and targets. Seller Central does not show ACoS.

Last updated Oct 3, 2026 by the Amplivus strategy team. Part of the Amazon PPC glossary.

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