Amazon ROAS Calculator

Calculate your Amazon ROAS, your break-even ROAS, and the target ROAS your campaign should actually hit. Break-even ROAS is your selling price divided by your contribution margin, so it is different for every product, and no generic "good ROAS" number can tell you what yours is. Nothing uploads. Nothing is stored. Think in ACOS instead? The ACOS Calculator runs the same math the other way round and turns your target into a bid.

The short version: you break even when ROAS equals price divided by contribution margin. If $18 of a $40 sale is left after landed cost and Amazon's fees, you need $2.22 of sales for every ad dollar just to stand still. Above that you keep the difference. Below it, every ad sale costs you money.

Your ROAS

Sales Amazon attributed to an ad click.

Ad plus organic. Unlocks TACOS.

ROAS
–
Ad sales per ad dollar.
ACOS equivalent
–
The same number, inverted.
TACOS
–
Ad spend over total sales.

Break-even ROAS

Manufacture, freight and duty. Not fees.

Returns allowance, storage, prep, anything else that comes out of every unit.

Break-even ROAS
–
Below this, the ad sale loses money.
Contribution margin
–
Per unit, before ad spend.
Break-even ACOS
–
The same line, in ACOS.

Target ROAS

There is no single correct ROAS. It depends entirely on what the campaign is for.

As a share of the selling price.

Target ROAS
–
Set your goal and margin above.
Target ACOS
–
Turn it into a bid in the ACOS Calculator.
How to read ROAS without fooling yourself
  • ROAS and ACOS are the same measurement, inverted. A 4.00x ROAS is a 25% ACOS. Pick one and stay in it, or you will compare a ratio to a percentage and misread both.
  • Break-even ROAS is per product. A 3x ROAS is comfortable on a high-margin product and loses money on a thin one. Averaging across a catalogue hides both.
  • A ranking campaign is supposed to run below break-even ROAS. Judge it on TACOS and on the organic rank it buys, not on its own ROAS.
  • ROAS only counts sales Amazon attributes to an ad click. Organic sales your ads helped create are invisible to it, which is why TACOS belongs next to it.
  • The referral fee is not 15% everywhere. Several categories differ and a few are tiered by price. Check yours rather than taking the default.

Questions

How do you calculate ROAS on Amazon?

ROAS is ad sales divided by ad spend. Spend $300 and get $1,200 of ad-attributed sales and your ROAS is 4.00x, meaning $4 of sales for every $1 of ads. It only counts sales Amazon credits to an ad click, so it reads worse than reality whenever your ads are also lifting organic rank.

What is a good ROAS on Amazon?

There is no universal number. A good ROAS is above your break-even ROAS, and your break-even ROAS depends on your margin. On a product that keeps $18 of a $40 sale before ads, break-even is 2.22x, so 4x is healthy. On a product that keeps only $6 of the same $40, break-even is 6.67x, and that same 4x loses money on every sale.

What is break-even ROAS?

Break-even ROAS is the ROAS at which ad spend exactly consumes your profit on the sale. It equals your selling price divided by your contribution margin, the amount left after landed cost, the referral fee, the fulfilment fee and any other per-unit cost. A $40 product with $18 of contribution margin breaks even at 2.22x.

How do I convert ACOS to ROAS?

Divide 1 by the ACOS as a decimal. A 25% ACOS is 1 divided by 0.25, which is a 4.00x ROAS, and a 4.00x ROAS converts back to a 25% ACOS the same way. They are the same measurement written two ways, so a target in one always has an exact equivalent in the other.

Is ROAS the same as TACOS?

No. ROAS divides ad sales by ad spend, so it grades the campaign. TACOS divides ad spend by total sales, organic included, so it grades the business. A campaign can post a falling ROAS while TACOS also falls, which usually means the ads are building organic sales the ROAS figure never sees.

What ROAS should a ranking campaign target?

Lower than break-even, deliberately and for a limited time. A ranking push buys sales velocity on one search term to move organic position, and the return shows up later as organic sales that carry no ad cost. Cap it in dollars over a fixed number of days and watch TACOS while it runs, rather than killing it for a low ROAS.

Does this calculator upload anything?

No. There is no file to send, no account to make and no email box. Every number you type stays in the page, the arithmetic runs in your own browser, and nothing is stored when you close the tab.

Knowing the target is the easy half.

A correct target ROAS does nothing if the account is spending against search terms that never convert. The free Audit Dashboard runs your bulk file through all 9 panels: search-term bleed, bid architecture, placement strategy, branded split and ASIN concentration. A 30-minute call with Alfred turns the findings into the specific changes to make first.

Run the full free audit → Book a 30-min call