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Amazon Profitability Calculator

The Amazon Whisperer | Calculate Break-Even ACOS & Profitability TACOS for Product Launches

Product & Pricing Details

This calculator helps you determine sustainable advertising spend levels for new product launches by factoring in marketplace fees and your profitability goals.
Price customer pays on Amazon
Referral fee varies by category
Amazon FBA shipping & handling cost per unit
Your product cost (manufacturing, materials, etc.)
Packaging, labor, overhead allocation, etc.
Your desired profit margin on organic sales
% of sales expected WITHOUT advertising

Financial Summary

Fill out the form to see calculations

How This Works

Calculation Breakdown

This calculator determines how much you can sustainably spend on advertising while maintaining profitability targets.

Net Revenue Calculation:

Selling Price
− Referral Fee (category %)
− FBA Fee
− COGS
− Other Costs
= Net Revenue Available

Break-Even ACOS: The maximum percentage of revenue you can spend on ads and still not lose money (0% profit on advertising).

TACOS (Total Advertising Cost of Sales): Combines organic profit with advertising spend. The organic sales maintain your margin target, while paid sales get a calculated advertising budget.

Key Insight: If 70% of sales are organic (at 30% margin), and 30% come from ads, you can afford different ACOS rates on the paid portion to maintain overall profitability.

Understanding Your Profit Scenarios

Organic Sales (70% example): These sales happen without ads. They generate your target profit margin, so you want to protect this revenue.

Paid Sales (30% example): These come from advertising. You allocate budget from the net revenue available per unit.

TACOS Targets: Shows what your total advertising spend should be as a percentage of ALL revenue (organic + paid) to hit profit goals.

Pro Tip: Lower TACOS is better—it means you’re achieving profitability while spending less on ads. High TACOS might indicate you’re bidding too aggressively for paid volume.

How to Use This for Client Launches

1. Gather Product Data: Get the selling price, COGS, and estimated FBA fees from your client or Amazon’s FBA calculator.

2. Set Expectations: Choose a realistic organic sales percentage (70% for new products is conservative) and profit margin target (20-40% depending on category).

3. Determine Ad Budget: Use the TACOS targets to set campaign budgets. If your target TACOS is 25%, that’s your overall advertising spend as a % of total revenue.

4. Monitor & Adjust: Track actual organic vs. paid split and adjust ACOS targets accordingly. If organic is lower than expected, increase bids slightly. If higher, you can reduce.

5. Scale Profitably: Once you know what ACOS the numbers support, you can confidently scale campaigns knowing you’ll maintain profitability.