Free tool
Amazon Break-Even ACoS Calculator (UK, VAT-Inclusive)
Break-even ACoS is the highest ACoS a campaign can run at before each ad-driven sale loses money. It equals your profit per unit before advertising divided by your selling price. On Amazon.co.uk, ACoS is calculated on VAT-inclusive sales, so this calculator takes VAT out of your margin first.
Frequently Asked Questions
How do you calculate break-even ACoS on Amazon?
Break-even ACoS is your profit per unit before advertising divided by the selling price. Take the price, subtract VAT, the referral fee, the FBA fee, the product cost and any other costs per unit, then divide what is left by the price. If an ad's ACoS is below that, the sale makes money.
Why does VAT matter for break-even ACoS in the UK?
On Amazon.co.uk, the sales figure used for ACoS includes VAT, but you never keep the VAT. If you ignore it at 20% VAT, your break-even ACoS looks about 17 percentage points higher than it really is, and campaigns that appear profitable can lose money.
What is a target ACoS?
Target ACoS is your break-even ACoS minus the profit margin you want to keep on ad-driven sales. With a 30% break-even ACoS and a 10% profit target, your target ACoS is 20%. Launches often run above target for a while to build rank.
How do I work out a maximum CPC?
Maximum CPC is the selling price multiplied by your conversion rate and your break-even ACoS. At £25, a 10% conversion rate and a 30% break-even ACoS, you can pay up to £0.75 a click before ads lose money.
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