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What Is TACoS? Meaning, Formula and Examples

Ad spend divided by total sales.

Definition

Ad spend divided by total sales.

Why it matters

It shows advertising dependence.

How it works

TACoS = ad spend ÷ total sales × 100

Example

₹10,000 spend with ₹2,00,000 total sales is 5%.

Common mistake

Reviewing it too rarely.

Using it in practice

Review TACoS alongside related metrics rather than in isolation, and agree definitions across your team so reports stay consistent.

Need help putting this into practice?

Gravmo's team can plan and run this for you. See Amazon Store Setup and Marketing or message us on WhatsApp.

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Frequently asked questions

Is TACoS the most important metric?

No single metric tells the whole story; use it with business outcomes.

How often should we review TACoS?

Monthly for most businesses, weekly during active campaigns.

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