The PPC Estimator helps you estimate advertising costs, ACOS, TACOS, and required budgets for Amazon PPC campaigns. This guide shows you how to use it effectively.

What is PPC Estimator?

The PPC Estimator calculates advertising costs, ACOS (Advertising Cost of Sales), TACOS (Total Advertising Cost of Sales), and helps you plan your PPC budget.

Step 1: Enter Product Information

• Selling Price: Your product price
• Product Cost: Cost per unit
• Target ACOS: Desired advertising cost percentage

Step 2: Enter Conversion Metrics

• Conversion Rate: Percentage of visitors who buy (typically 10-15%)
• Click-Through Rate: Percentage who click your ad
• Cost Per Click: Average CPC for your keywords

Step 3: Set Sales Goals

• Target Sales: Units you want to sell per month
• Ad-Attributed Sales: Sales from ads (typically 30-50% of total)

Understanding Results

ACOS (Advertising Cost of Sales)

Percentage of ad spend relative to ad-attributed revenue. Lower is better. Aim for 20-30%.

TACOS (Total Advertising Cost of Sales)

Includes both ad spend and product costs. Shows true cost of advertising.

Required Budget

Monthly PPC budget needed to achieve your sales goals.

Best Practices

• Aim for ACOS of 20-30% for profitable campaigns
• Start with lower budgets and scale up
• Monitor conversion rates and adjust
• Focus on high-converting keywords
• Track both ACOS and TACOS