Amazon TACoS Calculator
Validate your Amazon product economics before you invest. Enter your price, conversion rate, and CPC — we'll tell you whether the numbers work.
Spending 20–30% of sales on advertising is acceptable for some established brands with high margins, but may be challenging for others. Consider your overall margins carefully.
How the math works
TACoS (Total Advertising Cost of Sales) = ad spend ÷ total sales. On a per-click basis: TACoS = (CPC ÷ (ASP × CR)) × 100.
Reverse mode: to hit a target TACoS, the maximum CPC you can pay is CPC = (Target TACoS × ASP × CR) ÷ 100.
Rules of thumb: under 20% is strong for most brands; 20–30% is workable for high-margin categories; above 30% usually squeezes profitability unless conversion rate is lifted or CPC reduced.
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