In short
- TACOS is ad spend divided by total sales, attributed and organic. ACOS only counts sales attributed to ads.
- Use ACOS for decisions about a campaign or keyword, and TACOS for decisions about a product or account.
- Read the direction of both over time: the combination tells you more than either number.
- A good TACOS is one your margin can pay for. Calculate the limit per product.
TACOS, or total advertising cost of sales, is your ad spend divided by your total sales, both attributed and organic. It shows how much of your whole revenue goes to advertising, which ACOS cannot do because ACOS only counts sales attributed to ads.
The two numbers answer different questions. ACOS asks whether a campaign is efficient. TACOS asks whether the business is becoming more or less dependent on paid traffic. You need both, and this guide shows how to read them together.
How do you calculate TACOS on Amazon?
Divide total ad spend by total sales for the same period and the same products, then multiply by 100.
Formula
TACOS = ad spend ÷ total sales × 100
Example
Here is an example with invented figures for one product over one month:
- Ad spend: $2,000
- Sales attributed to ads: $8,000
- Total sales, including organic: $20,000
ACOS is $2,000 ÷ $8,000 = 25%. TACOS is $2,000 ÷ $20,000 = 10%. Spend is the same in both, and only the denominator changes.
Amazon Ads explains the ACOS side of this in its guide. To get TACOS you need to bring in total sales from your business reports, since the campaign report only shows attributed sales.
What is the difference between TACOS and ACOS?
ACOS measures spend against attributed sales, while TACOS measures spend against all sales. That makes ACOS the better tool for decisions about a campaign or keyword, and TACOS the better tool for decisions about a product or an account.
| ACOS | TACOS | |
|---|---|---|
| Denominator | Attributed sales | Total sales |
| Best level | Keyword, ad group, campaign | Product, brand, account |
| Main question | Is this advertising efficient? | How dependent is revenue on advertising? |
| Blind spot | Ignores the effect on organic sales | Cannot tell you which campaign to change |
Common mistake
Because total sales are always at least as large as attributed sales, TACOS can never be higher than ACOS for the same set of products and period. If yours is, the two figures are not covering the same scope.
How do you read TACOS and ACOS together?
Read the direction of both over time rather than one value on its own. The combination tells you much more than either number does.
| ACOS | TACOS | Likely reading | What to check |
|---|---|---|---|
| Stable | Falling | Total sales are growing faster than ad spend | Whether organic rank really improved or a seasonal peak is helping |
| Falling | Rising | Ads are taking a larger share while total sales lag | Whether campaigns, especially branded ones, are capturing sales you would have had anyway |
| Rising | Falling | You are paying more per attributed sale, but total sales are growing more | Whether the total gain still pays for the extra spend |
| Rising | Rising | Efficiency and dependence are both getting worse | Bids, wasted search terms, price, stock and the product page |
Take the first example over two more invented months. In month two, spend rises to $2,400 and ad sales to $9,600, while total sales reach $30,000. ACOS stays at 25% but TACOS falls to 8%: spend grew, and revenue grew faster.
In month three, spend rises to $3,000, ad sales fall to $9,000 and total sales drop to $20,000. ACOS is now about 33% and TACOS 15%. The same account has moved from healthy growth to paying more for less, and the ACOS change alone would have understated how much.
These readings are hypotheses. A falling TACOS suggests your organic position may be improving, but it does not prove advertising caused it. Stock levels, price changes, competitors and seasons all move total sales.
What is a good TACOS on Amazon?
A good TACOS is one your margin can pay for, with enough profit left over for what the product needs to contribute. No single figure works across products, because margins and growth stages differ.
The link to profit is direct. Before fixed costs, your profit is roughly total sales × (margin before ads − TACOS). With $20,000 of total sales, a 30% margin before ads and a 10% TACOS, that is $20,000 × (0.30 − 0.10) = $4,000.
That formula also gives you a limit. With a 30% margin before ads, a 30% TACOS leaves nothing, and anything above it loses money before fixed costs. To keep 15% of sales as profit, TACOS has to stay at or below 15%.
Tip
Calculate the limit per product, since a blended account figure hides a lot:
- A product in launch can run far above its long-term figure for a defined period.
- A mature product with strong organic demand should normally sit lower.
- A low-margin product may not be able to afford a TACOS that looks fine for the rest of the catalog.
What can make TACOS misleading?
TACOS looks simple, but several things can move it without any change in how good your advertising is.
- Stockouts. When a product goes out of stock, total sales fall and any remaining spend on other items distorts the account figure. Exclude those days or read the product separately.
- Price and coupon changes. A discount can lift units while reducing revenue per unit, which changes TACOS even though the campaigns did not change.
- Seasonal peaks. A high-demand period raises organic sales on its own. Compare with the same period of the previous year if you have it.
- Mixed scope. If spend covers one set of products and total sales another, the figure means nothing. Match them product by product.
- Attribution timing. Attributed sales for recent days may still change, so read closed periods. A rolling four-week view is steadier than a single week.
- Currency. If you sell in several marketplaces, convert everything before adding it up, and keep the exchange rate consistent across periods.
How should you act on a rising TACOS?
Find out first whether the rise comes from more spend or from fewer total sales. They look the same on the chart and call for opposite responses.
- Split the change. Compare spend and total sales separately against the previous period.
- If spend rose: look for the campaigns behind the increase and check whether their extra sales are new or would have happened anyway. Branded terms deserve the closest look.
- If total sales fell: look outside advertising first. Stock, price, the Buy Box, reviews and new competitors may be the real cause, and raising bids will not fix them.
- Change one thing and measure it. Selloop evaluates each applied change from day 8 and again from day 15. You can use the same two checkpoints by hand: note what you changed, when, and the starting values.
Frequently asked questions
Does Amazon show TACOS in its reports?
You can calculate it by combining ad spend from your advertising reports with total sales from your business reports. Make sure both cover the same products and dates.
Can TACOS be higher than ACOS?
No, not with the same scope. Total sales include attributed sales, so the denominator is at least as large. A higher TACOS means the two figures cover different products or periods.
Is a falling TACOS always good?
No. It can also fall because you cut advertising too far. Total sales may hold up for a while and then drop, so check that total sales are stable or growing as well.
Should I use TACOS instead of ACOS?
Use both. ACOS helps you decide what to change in a campaign, and TACOS shows whether those decisions are helping the product and the business as a whole.
How often should I check TACOS?
A weekly look at a rolling four-week figure is enough for most products. Daily readings mostly reflect attribution timing and ordinary swings in sales.
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