How the TACoS Calculator works
TACoS (total advertising cost of sales) divides ad spend by all revenue, not just the sales the ads console attributes to ads. It shows how dependent the whole business is on paid traffic.
A falling TACoS while ACoS stays flat is the healthiest pattern: ads are lifting organic rank, so each ad dollar drives more total sales. A rising TACoS means paid traffic is replacing organic sales instead of adding to them.
Formula
- TACoS = Ad spend ÷ Total revenue × 100
- ACoS = Ad spend ÷ Ad-attributed sales × 100
- Organic share = (Total revenue − Ad sales) ÷ Total revenue × 100
Example
$1,500 spend on $12,000 total revenue is 12.5% TACoS with 30% ACoS and 58% organic sales.
Frequently asked questions
What is a good TACoS?
Under 10% for an established listing, 10–20% while growing, and 20–40% is normal during the first months of a launch.
Why is TACoS lower than ACoS?
Because it divides by all revenue, including organic sales that the ads did not directly cause.
Should I optimize for TACoS or ACoS?
Use ACoS to manage individual campaigns and TACoS to judge whether advertising is making the whole business healthier.