Amazon PPC glossary
Break-even ACOS
Break-even ACOS is your profit margin before ad costs, shown as a percentage. It is the line between making money and losing money on an ad-driven sale. Your target ACOS should sit comfortably below it.
Example
Your product sells for $20, and after product cost, Amazon fees and shipping you keep $5 before ads. $5 divided by $20 is 25%, so your break-even ACOS is 25%. At a 15% ACOS you still earn a profit. At 35% you lose money on every ad sale.
Where it matters most: Book 1, The Amazon PPC Clarity Guide, in the chapter “When Not to Run Ads.”
Work out your own break-even ACOS with the free calculator
Go deeper
The glossary gives you the one-line answer. The Amazon PPC Clarity Guide explains why it matters and what to do about it.