Break-even ACOS
Contribution before advertising divided by revenue. The approximate ACOS at which an attributed sale leaves no contribution.
Break-even ACOS = contribution before advertising ÷ revenue × 100. For a $40 sale with $26 of non-ad variable costs, the contribution is $14 and break-even ACOS is 35%. At 25% ACOS, the $10 advertising cost leaves $4 before fixed overhead and any omitted costs.
Include the applicable product cost, selling and fulfillment fees, freight/duty, returns and other relevant variable costs. Use a consistent tax and currency basis, and avoid counting a fee twice. This is contribution break-even, not necessarily whole-business net-profit break-even.
AutoPPC supports Margin-weighted targets when usable product economics and campaign-group mappings meet the required coverage checks. Unit COGS alone is not a complete margin. Missing selling prices or fees can leave an account unready for margin-derived targets; a manual Target ACOS is a separate strategy choice.
See choosing a target and the audit checklist.