How One Tiny Math Mistake Cost Me a Small Fortune

Let’s be real: launching a product on Amazon without knowing your break-even point is like going on a road trip with no GPS and a half tank of gas. You might get somewhere... or you might stall out in the desert next to a cactus named Regret.

I’ve been there. A product you “just know” will crush it... until you realize you’re bleeding cash because your ads are eating your profits faster than a kid eats Halloween candy.

So today, I want to show you the exact break-even formula I use every single time before launching a product. It’s simple, it’s fast, and it could save you thousands 💰.

📖 That Time I Thought I Was a Genius (But the Math Disagreed)

I once launched a silicone popcorn maker—yeah, I know, trendy at the time.

I sourced it for $4.25 landed, sold it for $19.99, and thought I was golden. Great margin, right?

Wrong.

After FBA fees, PPC, refunds, storage fees, and one idiot who ordered 10 and returned 9 (don’t ask), my actual profit per unit was… negative $0.89.

I was paying Amazon to sell my product 🤦‍♂️.

That’s when I sat down and built a dead-simple break-even formula I now use religiously.

🔢 The Break-Even Formula I Swear By

Here it is. No fluff. No MBA needed.

Break-Even ACoS = (Profit ÷ Sale Price) × 100

Let’s break it down with a real example:

👉 Say you're selling a yoga mat:

• Sale Price: $29.99

• Product Cost (landed): $8.50

• FBA Fees: $7.00

• Misc. Costs (storage, returns, inspection, etc.): $1.00

💡 Your Total Cost = $16.50
💡 Your Profit = $13.49

Plug it in:

Break-Even ACoS = (13.49 ÷ 29.99) × 100 = 44.98%

🎯 This means you can afford to spend up to 44.98% of your sale price on ads and still break even.

If your ACoS is higher than that, you’re losing money. If it’s lower, you’re in profit city 🏙️.

🎯 The Big Lesson? Know Before You Blow (Your Budget)

Before you hit “launch” and throw cash at ads, always—always—run your break-even math.

It tells you:

✅ How aggressive you can be with PPC
✅ When to pause or optimize a campaign
✅ Whether your price even makes sense

Launching blind is for rookies. Smart sellers run the numbers, set thresholds, and then go to market.

💬 Say It With Me: “If You Can’t Measure It, You Can’t Manage It”

I know it’s not sexy. I know math isn’t why you got into Amazon.

But this 10-second formula? It’s one of the sharpest tools in your toolbox 🔧.

Before every launch, do the math. Protect your profit. Sell smarter.

🙋‍♂️ Comment if you’ve ever launched without knowing your break-even ACoS 👇
💌 Forward this to a seller friend who’s about to launch 💣

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To your success,

Andy Splichal
Founder & Managing Partner of True Online Presence & Author of the Make Each Click Count Book Series

P.S. You’ve got products to sell and a business to scale. If PPC feels like a second job (or a black hole for your budget), let me handle it. I’ve scaled dozens of FBA brands profitably.
💬 Book a quick discovery call — I’ll show you what’s possible.

P.S. Want a fast way to increase your Amazon sales? Take a look at my new software, Persona Factor, that uses your product reviews to optimize your product titles and descriptions.

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