Ad math

TACOS Calculator

Ad spend measured against everything you sell: the metric Amazon sellers watch to see whether ads are building a brand or propping one up.

TACOS = ad spend ÷ total revenue (organic + paid) × 100. Spend $900 on ads in a month with $10,000 of total sales and your TACOS is 9%, and if $3,500 of that revenue was ad-attributed, 65% of the business still arrives organically. TACOS is the honest sibling of ACOS: ACOS can look great while ads cannibalize sales you would have made anyway. A falling TACOS with growing revenue is the healthiest pattern in e-commerce: ads are seeding organic rank that compounds. Enter your numbers to see both.

TACOS Calculator — your numbers

TACOS

9.0%

Organic revenue share

65.0%

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

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Worked examples

Maturing Amazon product

Ad spend $900.00
Total revenue $10,000.00
Ad-attributed revenue $3,500.00
TACOS 9.0%
Organic revenue share 65.0%

A 9% TACOS with 65% organic share: ads are a supplement, not life support.

Launch-heavy month

Ad spend $2,000.00
Total revenue $10,000.00
Ad-attributed revenue $6,000.00
TACOS 20.0%
Organic revenue share 40.0%

A 20% TACOS and only 40% organic: fine during launch, alarming at month twelve.

TACOS comes from the Amazon seller world, where Seller Central reports ad-attributed sales but says nothing about how dependent the listing is on Amazon PPC overall. Computing it monthly answers that: add up every dollar of Sponsored Products, Sponsored Brands, and Sponsored Display spend, then divide by total ordered product sales, organic included. The same math works off Amazon too, such as a Shopify store running Meta ads. Once you know the ratio, pressure-test the spend itself with the PPC profit calculator to confirm each click is still profitable at your margin.

Frequently asked questions

What is a good TACOS?

Established Amazon products typically settle at 5–12%; launches often run 20–30% while Amazon PPC does the heavy lifting. The trend matters more than the level: TACOS drifting down while total revenue grows means organic rank is compounding, exactly what you want. TACOS climbing at flat revenue means you are paying more each month for the same business.

What is the difference between TACOS and ACOS?

ACOS divides ad spend by ad-attributed sales only; TACOS divides the same spend by all revenue, organic included. ACOS grades the campaign, TACOS grades the business. A 25% ACOS looks identical whether ads drive 20% or 90% of your sales: TACOS is what separates a brand with organic pull from one entirely rented from the ad auction.

Why does organic revenue share matter?

Because it prices your independence. A store earning 65% of revenue organically survives a doubling of CPCs; a store at 15% organic share is one auction shock away from unprofitability. On marketplaces, organic share is also the dividend from past ad spend: sales rank earned by paid orders keeps paying after the campaign stops.

How do I lower TACOS without losing sales?

Shift spend from defense to offense: prune ad spend on search terms where you already rank organically top-3, and reinvest in terms where paid orders can still buy rank. Improve listing conversion (images, reviews, price) so both paid and organic traffic convert better: conversion gains lower TACOS from both directions at once.

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