The 3-Number Bid Calculator
How it works
Price × target ACoS × conversion rate = the most you should pay for one click. Your target comes from break-even ACoS: what’s left of the price after every cost before ads, divided by the price. Placement boosts sit on top of your bid, so the bid you type in is that ceiling divided by the boost.
1 · Your break-even ACoS
Per unit sold. Put in your own; these are an example.EXAMPLE
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2 · Your target and conversion rate
Aim under break-even for profit, or right at it on a launch. Use the keyword’s own conversion rate once it has real data; until then, the campaign’s.
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Every bid, by conversion rate
Same price and target. Your keyword’s rate is highlighted.
| Conversion rate | Max bid | Base bid (with boost) |
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How to use it
- Put in your price and what it costs to sell one unit before ads. That gives your break-even ACoS.
- Pick a target under break-even for profit, or at it for a launch.
- Use each keyword’s own conversion rate (orders ÷ clicks) once it has real data. Until then, use the campaign’s.
- If you boost top of search, type in the base bid, not the ceiling: the boost stacks on top.
- When new data comes in, update only the conversion rate. Price and target don’t move.
Good to know
- Example: $40 price, $14 left before ads = 35% break-even. At a 30% target and 10% conversion, the ceiling is $1.20. A 50% top-of-search boost means a base bid of $0.80.
- One conversion rate for the whole account overpays your broad terms and starves your best exact ones.
- This assumes one unit per order. If shoppers often buy several, use your average order value instead of the price.
- The base-bid figure assumes dynamic bids are set to “down only”. On “up and down”, Amazon can raise it further (see the Bid Stack Calculator).
- Referral fees vary by category. Check yours in Seller Central.
Dr. PPC pulls in your margins and works out the break-even bid for every product, so you don’t keep this sheet by hand.
Start for $1