How do I calculate Amazon TACoS?
Calculating Amazon TACoS requires two numbers that many sellers look at separately but rarely combine: total ad spend from Campaign Manager and total revenue from Seller Central's Business Reports. The formula is straightforward, but the data-gathering step is where sellers often go wrong, either pulling spend from only some campaigns or using ad-attributed revenue instead of total revenue. Using the wrong denominator produces a figure that looks like TACoS but actually behaves like ACoS, which defeats the purpose of tracking TACoS in the first place. TACoS stands for Total Advertising Cost of Sales. The formula is: TACoS (%) = (Total Ad Spend / Total Revenue) × 100. Total Ad Spend is the sum of all money you have spent on Amazon advertising across all campaigns for your product, including Sponsored Products, Sponsored Brands and Sponsored Display if applicable, over the measurement period. Total Revenue is the sum of all sales generated by your listing over the same period, regardless of whether those sales were attributed to an ad click or came from organic search. The critical distinction between TACoS and ACoS lies in the denominator. ACoS divides ad spend by ad-attributed revenue only: the sales that Amazon's attribution system recorded as resulting from an ad click. TACoS divides ad spend by total revenue, which includes organic sales that received no ad click attribution. This means TACoS is always equal to or lower than ACoS for the same listing and time period, because the denominator is larger. The gap between ACoS and TACoS is a direct measure of how much organic revenue your listing generates relative to its paid revenue. To find your total ad spend, go to Seller Central and navigate to Advertising, then Campaign Manager. Set the date range for the period you want to measure. At the top of the Campaign Manager dashboard, the summary bar shows your total Spend figure for the selected period across all active campaigns. If you run multiple campaign types, ensure the date filter is applied across all of them, or export a report that consolidates spend across Sponsored Products, Sponsored Brands and Sponsored Display. To find your total revenue, go to Seller Central and navigate to Reports, then Business Reports. Select the Detail Page Sales and Traffic by Child Item report (or the equivalent for your account type). Set the same date range you used for ad spend. The column labelled Ordered Product Sales gives you the total revenue figure for that ASIN across all sales, organic and paid. This is the figure to use as your TACoS denominator. Do not use the Sessions or Units Ordered figures: you need the revenue value. Once you have calculated TACoS, the most useful thing you can do with it is compare it to previous periods to establish a trend. A single TACoS figure in isolation tells you relatively little. TACoS of 12% might be excellent for a product launched three months ago and concerning for a listing that has been live for three years. It is the direction of travel that provides insight: falling TACoS over successive periods, accompanied by stable or growing total revenue, signals that organic sales are increasing as a proportion of total sales. Also compare your TACoS to your ACoS for the same period. A large gap between ACoS and TACoS indicates strong organic performance: if your ACoS is 28% but your TACoS is 9%, approximately 68% of your revenue is coming from organic sales with no direct advertising cost. A small gap between ACoS and TACoS indicates high ad dependency: if ACoS is 18% and TACoS is 16%, nearly all of your revenue is coming through paid clicks, leaving very little organic cushion if your ad budget is reduced.
Amazon TACoS is calculated by dividing total ad spend by total revenue, then multiplying by 100. Learn the formula, where to find the data and how to use it.