Amazon TACoS Calculator

How to calculate Amazon TACoS calculator?

TACoS measures advertising spend as a share of total sales to show how ad costs relate to overall revenue.

Use the formula: TACoS (%) = (Total Ad Spend / Total Sales) * 100

Using the Amazon TACoS calculator calculator: an example

Example values: Total Ad Spend = $5,000 and Total Sales = $50,000.

Step-by-step calculation:

1. Record totals: Ad Spend = $5,000; Sales = $50,000.
2. Divide spend by sales: 5,000 ÷ 50,000 = 0.10.
3. Convert to percentage: 0.10 × 100 = 10% TACoS.
4. Interpretation: A 10% TACoS means 10 cents of every dollar in sales is spent on ads; lower TACoS generally indicates more efficient advertising.

Frequently Asked Questions

What is a good TACoS percentage?

A "good" TACoS varies by category and growth stage; commonly, lower than 10-15% is efficient for mature brands, while growth phases may tolerate higher TACoS.

How often should I track TACoS?

Track TACoS weekly or monthly to monitor trends and the impact of campaign changes on overall sales performance.

Does TACoS include organic sales?

Yes. TACoS uses total sales (organic plus paid), which helps assess advertising efficiency relative to all revenue.

How does TACoS differ from ACOS?

ACoS measures ad spend against ad-attributed sales, while TACoS compares ad spend to total sales, giving a broader view of ad efficiency.