Your real break-even ACoS, not the 25% rule.
Type in your price and costs. See the exact ACoS where a sale stops making money — plus the target ACoS you should actually aim for and the max you can pay per click. Runs entirely in your browser.
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Knowing your break-even ACoS is step one. RedHen tracks real profit per product (after COGS, FBA, referral fees, returns) and queues bid changes that hold each product to its own target — waiting for your approval by default, or running unattended if you switch that on. Flat fee, never a percentage of your ad spend.
Start a 14-day free trialPut this number in a rule and it holds every keyword to it. In our rule set, keywords running between the line and 60% ACoS get their bids pulled back toward it, and anything at 60% or more is paused. See our Amazon PPC automation rules, with every threshold.
Break-even ACoS — common questions
Break-even ACoS is the advertising cost of sale at which an ad-driven order makes exactly zero profit — your ad spend per sale equals your profit per sale before ads. Spend a higher ACoS than this and the sale loses money; spend less and you keep the difference.
Because 25% is a guess that ignores your actual COGS, FBA fee, and referral fee. A high-margin product might break even at 50%+, while a thin-margin one breaks even at 15%. Optimizing to a generic 25% means you're either leaving sales on the table or quietly losing money.
Take your profit per unit before ad spend (price minus COGS, FBA fee, referral fee, shipping, and a returns allowance) and divide it by your sale price. That percentage is the most you can spend on ads per sale before that sale stops being profitable.
Below break-even, by however much profit you want to keep. If you break even at 40% and want to pocket 30% of your margin, your target is roughly 28%. The right cushion depends on whether you're launching (closer to break-even to win rank) or harvesting profit (further below).
Multiply your target ACoS by your sale price and your conversion rate: max CPC = target ACoS × sale price × conversion rate. At a 28% target, a $30 price and a 10% conversion rate, that is $0.84 a click. The Max CPC bid tab does it for both your break-even and your target ACoS.
The math is exact for the numbers you enter. FBA and referral fees are estimates unless you pull the exact figures from Seller Central — Amazon changes them per ASIN. RedHen syncs the real fees Amazon actually billed you so your targets use true numbers, not estimates.
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