Every product has its own break-even. I bid to each one.
One ACoS target overspends on some products and starves others. I set bids, placements and budgets from each product’s margin, so every dollar clears its line.
Illustrative figures, per $100 of ad-attributed sales. Below the dashed line, a sale loses money.
Two products each make $100 in ad sales and spend $25 on ads, an identical 25% ACoS. Product A has $60 of Amazon fees and product cost, so it keeps $15. Product B has $80, so it loses $5. Use the two sliders below to try your own break-even ACoS and ACoS.
The calculator above, built for a whole catalog. Enter price, fees, landed cost and conversion rate per product. The sheet gives you break-even ACoS, a target ACoS and the highest CPC each product can afford.
Instant download. No spam; I may follow up once to ask whether it helped. Privacy.
Break-even ACoS calculator
SKU
Price
Break-even
Target
Max CPC
Example-01
$39.99
48.2%
38.2%
$1.83
Example-02
$24.99
18.0%
8.0%
$0.24
Example-03
$59.00
43.2%
33.2%
$1.96
Example-04
$18.49
27.3%
17.3%
$0.38
The problem
Low ACoS Profit pays your bills.
Most PPC managers chase a low ACoS. But an ACoS target that isn’t built from your price, fees and landed cost is a guess, and a good-looking guess can still lose money.
I spent eight years as a pricing analyst, and for the last three I managed Amazon campaigns alongside it. So I start with your unit economics and work backward to what every ad dollar is allowed to do.
Every campaign does every job
Auto, broad, phrase and exact stop having distinct roles, so nobody can tell what’s finding demand and what’s just spending.
The same search term pays twice
A query that already converts keeps spending in discovery campaigns and competes with itself for the same shopper.
Bids drift away from margin
Bids, placements and budgets move without a shared profit rule, so top-of-search premiums quietly eat your contribution.
Where I look first
Five questions I ask of every account.
The answers take about ten minutes to pull, and they say more about whether ads run on profit than any dashboard.
What’s the break-even ACoS for each of our top 10 products?One target for the whole account usually hides products that lose money on every ad sale.
How much did we spend last month on search terms with zero orders?Usually the fastest money in an account.
Which converting search terms are still running in auto or broad campaigns?Terms that already convert cost less to run in exact match.
What are we paying extra for top-of-search, and does it convert better there?The premium should be paid for by a higher conversion rate.
Is ad spend growing total sales, or only ad-attributed sales?The difference between ads that grow the business and ads that buy sales you’d get anyway.
The method
One job for every campaign layer
Search terms move forward only after they earn tighter control. Each week I review the data, promote what’s proven, and cut what isn’t.
Research
Auto and broad
Find new demand cheaply. These campaigns exist to learn.
Harvest
Phrase
Validate the search terms that convert, before paying to scale them.
Scale
Exact + product targeting
Fund proven demand, with bids set from your break-even numbers.
Defend
Negatives + placements
Stop proven terms from spending upstream, and pay placement premiums only where they convert.
$4.49M in ad sales across five documented accounts.
Client names are withheld. The full case studies show the console data, how each account was run, and what each result does and doesn’t prove.
Largest account
$2.16M in ad-attributed sales in 30 days at 11.38% ACoS
Personal care brand · Amazon US · Nov 21–Dec 21, 2025
About $246K of ad spend in a single month, run on clean campaign roles, weekly search-term harvesting and negatives, bid and placement rules, and budgets tied to TACoS and margin. The founder got a weekly scorecard: what changed, why, and what’s next.
Ad sales$2.16M
Ad spend$246.0K
ACoS11.38%
ROAS8.79
● Straight from the Amazon Ads consoleNov 21–Dec 21, 2025. Cropped; campaign list not shown. Tap to enlarge.
Highest return
$1.11M in ad-attributed sales at 5.51% ACoS
Women’s handbags and accessories brand
The account ran on clear campaign roles, weekly search-term harvesting, placement premiums paid only where conversion supported them, and budgets that followed proven demand.
Spending under $20K a month? You’re welcome to book too. The Profit-First Audit ($249) is often the better next step, and we can talk it through on the call.
You talk to me, not an account manager
Let’s talk about your business and your ads.
Start with a free 30-minute conversation about your company, your goals and how your advertising is going. We’ll discuss whether an audit or another next step makes sense.
