How much to spend on Amazon ads.

Get our occasional Amazon-profit playbook — budgeting by margin, where overspend hides, and what we automate on our own account.

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Setting a budget is step one. RedHen tracks real ad spend against real profit per product every day, and automates bid and budget changes for your approval — so the budget you set is the budget that actually works, not the one that quietly overspends. Flat fee, never a percentage of your ad spend.

There's no universal number — it depends on your margins and goals. Two sound methods: budget a target TACoS (total ad spend as a share of total revenue, commonly 8–15%), or set a target for ad-attributed sales and multiply by a target ACoS that stays below your break-even. This calculator does both.

TACoS is total ad spend divided by total revenue (ad + organic). Budgeting to a target TACoS ties your ad spend to the whole business, not just ad-attributed sales, so growing organic sales automatically gives you room to spend more — or pull back.

TACoS sizes spend from your total revenue (top-down) — good for a whole-account budget. ACoS sizes spend from the ad sales you specifically want (bottom-up) — good for planning a product or campaign. Use whichever matches how you think about the goal.

Take the monthly budget and divide by ~30.4 days. The tool shows the daily figure. In practice, set campaign daily budgets a little above that so high-intent days aren't capped, and let the monthly total be your real ceiling.

The calculator sets the target. Staying on it is the hard part — that's what RedHen automates: real spend tracked against real profit per product, with bid and budget changes queued for your approval. Flat fee, never a percentage of spend.

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