ACOS (Advertising Cost of Sales) is a key metric for advertisers and eCommerce sellers to evaluate the efficiency of their ad spend. It tells you how much you’re spending on advertising for every dollar of revenue generated. A lower ACOS usually means a more profitable campaign.
Why Use an ACOS Calculator?
This tool is helpful for:
- Amazon sellers
- eCommerce advertisers
- Digital marketers
- Business owners evaluating ROI on ads
By understanding your ACOS, you can make smarter marketing decisions, optimize your budget, and increase profitability.
Formulas and Equations
1. Advertising Cost of Sales (ACOS)
ACOS tells you what percentage of your revenue was spent on advertising.
2. Total Profit or Loss
This measures how much profit (or loss) remains after subtracting advertising costs from revenue.
Example Calculation
Let’s say:
- Total Advertising Cost = $1,200
- Total Sales Revenue = $4,000
Step 1: Calculate ACOS
Step 2: Calculate Profit or Loss
So, your advertising campaign spent $1,200 and earned $4,000 in revenue, resulting in a 30% ACOS and a $2,800 profit.
💡 Final Thoughts
Keeping your ACOS low is essential for maintaining profitability in digital advertising. With our ACOS Calculator, you can quickly analyze ad performance and make data-driven decisions to improve ROI.
