Skip to content
Merch Jar
Log in Start free trial

Calculator

Amazon CPC and target CPC calculator

Find the bid that hits your target ACoS, check your actual CPC, or see what placement adjustments do to a bid.

  • Free, no sign-up

Enter your Conversion Rate, Average Order Value, and Target ACoS to calculate your target CPC to meet your target ACoS.

Target CPC

$0.60

Want a next step that fits your account?

Optional
How do you manage Amazon Ads?
How much Amazon Ads spend do you manage monthly?

Skip these if you like. Your answers pick the suggestion below, and we keep them to learn who uses these tools.

Next step

Do this every day in Merch Jar.

Automation logic you can read, adjust and preview on your account. It's saved switched off, and runs once you turn it on.

Start free trial 14 days, no credit card.

What is a target CPC?

  1. 1Find your target CPC: the cost per click that reaches your target ACoS. The calculator works it out from your conversion rate and average order value, or from your revenue per click.
  2. 2Compare it with what you pay now. The spend and clicks tab gives you your current CPC.
  3. 3If your current CPC is less than your target CPC, raise your bid to hit your target ACoS. If it is greater, lower your bid.

FAQ

Target CPC Formula

Your target cost per click is calculated by first figuring out your revenue per click. This can be calculated by multiplying your conversion rate by your average order value.

Once you have your revenue per click, you want to multiply that by your target ACoS.

As an example, if you have a 10% conversion rate and a $19 average order value, then your revenue per click will be $1.90 (multiplying your $19 average order value by your 10% conversion rate = $19 * 0.10 = $1.90).

If you have a 19% target ACoS and you know your revenue per click is $1.90, then you will multiply those together to get your target CPC. In this case that would be $0.36 ($1.90 revenue per click * 0.19 target ACoS).

Your actual CPC

Actual CPC is ad spend divided by clicks over the same date range, so $450 of spend on 300 clicks is $1.50 a click. If that sits above your target CPC, clicks are costing more than your target ACoS allows at your current conversion rate and order value.

Before you cut the bid, check which side moved. A drop in conversion rate pushes ACoS up even when the CPC holds still, and what does ACoS mean walks through how the pieces fit together.

Placement adjustments and your bid

A placement adjustment raises your bid for one placement by a percentage. With a $1.00 bid and a 50% top of search adjustment, your top of search bid is $1.50. Rest of search and product pages work the same way with their own percentages.

It also works backward. If your target CPC for top of search is $1.20 and the adjustment is 50%, a bid of about $0.80 gets you there, since $0.80 x 1.5 is $1.20.

Your bidding strategy can move the bid again at auction time. Fixed bids use it as set. Dynamic bids - down only can lower it when a click looks less likely to convert, and dynamic bids - up and down can raise it as well, so a click can cost more than the adjusted bid the calculator shows.

How often should I adjust my bids?

Whenever the inputs move. Conversion rate and order value drift with price changes, reviews and season, so a target CPC worked out last month can be off today. Checking your biggest keywords every week or two keeps their bids close to your target ACoS.

By hand, across hundreds of keywords, that adds up. In Merch Jar, the Dynamic Bid Management template moves each bid toward your target ACoS in small steps, with a cooldown between changes. It's saved switched off, you preview the bids it would set, and it only changes them after you turn it on.