Amazon PPC Target Acos Calculation 30 September 2025

Published on September 30, 2025

About this video

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Setting up the right target ACoS for your Amazon advertising campaigns is the foundation of profitable PPC management. Many Amazon sellers make the costly mistake of targeting 20% ACoS without understanding their true break-even point, which can lead to losing money even when hitting their targets.

This video shows you exactly how to calculate your real target ACoS using a simple spreadsheet template that accounts for all Amazon fees. You'll learn how to factor in unit prices, cost of goods sold, referral fees, FBA fulfillment fees, monthly storage fees, and additional buffer fees for returns and long-term storage.

The step-by-step process reveals why a product with a 15% ACoS may look profitable, but you could actually be losing money on every sale.

By using this Amazon advertising calculator, you can determine your true target ACoS for any desired profit margin. Whether you want 20% profit after ads or any other margin, this template will show you the exact ACoS to aim for in your Amazon PPC campaigns.

This is essential knowledge for Amazon FBA sellers, brand owners, and anyone managing Amazon advertising campaigns. Getting your target ACoS wrong makes all other PPC optimization efforts worthless, so this foundational step is critical before scaling your Amazon ads.

The template is simple enough for any seller to recreate and customize based on their specific product categories and fee structures. Many experienced Amazon sellers discover this is their first time actually calculating their true break-even ACoS properly.

Contents: 0:00 Why 20% Target ACoS Can Lose You Money 0:17 Essential Amazon Fee Calculator Template 0:50 Real Product Example: $42 Unit Price Analysis 1:24 Understanding True Break-Even ACoS 1:48 How to Set Profitable Target ACoS Goals 2:42 Why This Changes Everything for Brand Owners 3:25 When to Consider Product Liquidation

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Transcript

If you're aiming at 20% a cost, please note that you can still be losing money at that a cost. So if you don't get this part right, all your other advertising efforts are worthless. So here's how to do it. This is a basic, absolutely basic template that anyone can do. It includes your unit prices, your COGS, your referral fees, FBA fulfillment fees, monthly storage fees, and what I like to add like additional buffer of fees. You can freely enter, I don't know, a dollar or two here for all the remaining fees fees that may happen depending on your category because there are return fees, there are longterm storage fees, and they keep appearing every month. So have a buffer of that. So what I've done here, this is something that I like to do with everyone that we start working with or even with uh the accounts that we just um evaluate and audit. So this is the first step and we don't move forward without this. Once you enter this data, you will see for example, take a look at this product. So it has a unit price of 42 and CG is 23 and the fees and blah blah. And you end up that if you have an a cost of 12.65% you're breaking even. You're not making any money. You're not losing any money. So you may think like if you have a cost of 15% in your advertising, you you would think that you're happy your your ads are profitable, but that's simply not the case. And these are the numbers like simply profit margin after you all add all of these fees. But if you enter that you want to have I don't know 20% of profit after the ads these numbers will will represent your target a cost to achieve this profit margin. Now please note that if you if you struggle with refunds etc this will not be the case that you will have 20%. But still if you aim with the to have 20% of profit margin this is your a cost that you want to aim for. Now there are many other things to look for. You can look at total a cost if that's your thing. You can look at a cost. You can look at cost per acquisition or whatever. But for this occasion when you want to have a target a cost if that's applicable for your account looking only at PPC, this is how to do it. So it cannot be simpler. So you're free to copy this if you like. I can also share it, but it's so easy to recreate it. This is a starting point. And I cannot stress enough how many brand owners I see that this is the first time they actually have this laid out like this. Please feel free to improve this uh comment and give me additional guides on how can I improve this. But this is just a basic layout. I like to customize it a little bit depending on the specific scenario that we have. But you know take a look at this if you are brand owner do it for yourself and it will be a change game changer for you. So it really help you nail your advertising and start to be as profitable as possible. Some of the information that you get from here may even give you a signal that you need to liquidate some of the products. But you know that's a good starting point. Okay. Please let me know if you have any additions to this or if you like it in the comments and follow me for more. Bye-bye, guys.