How to calculate your Break-Even ACOS

The break-even ACOS for a specific product is determined by the product price, the cost to manufacture the product and ship it to Amazon and Amazon fees.

For example, let’s say our garlic press product is sold on Amazon for $49.95

Our manufacture cost is $12.00 and shipping to Amazon is $5.00

Using the FBA Profit calculator we get the fees ($7.49+$3.30), and so the break-even point is 44.36%

If the item was sold for $29.95 the results would have been:

Fees – $4.49+$3.30

Break-even ACOS – 17.23%

This means that if the cost of advertising is over 17.23% of the product sales, we will not be profitable.

Notice: The break-even point needs to be recalculated whenever the product price or cost changes.