Advertisers buy media either per click (CPC) or per thousand impressions (CPM). Knowing your click-through rate lets you convert one into the other and compare offers: a $2 CPM with a 0.5% CTR equals a $0.40 CPC.
How to use the CPC and CPM Calculator
- Impressions
- Click-through rate (CTR)
- Cost per click (CPC)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the number of impressions, the click-through rate and the cost per click.
Tips
- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.
Common mistakes to avoid
- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.
Inputs explained
| Field | What to enter |
|---|---|
| Impressions | A number |
| Click-through rate (CTR) | In % |
| Cost per click (CPC) | Amount in your currency |
What each result means
- Clicks = [Impressions]×[Click-through rate (CTR)]÷100
- Total cost = [Clicks]×[Cost per click (CPC)]
- Cost per thousand impressions (CPM) = [Total cost]÷[Impressions]×1000
Example values
How the main result changes when Impressions changes and everything else stays at the example values above:
| Impressions | Total cost |
|---|---|
| 100,000 | 720 |
| 150,000 | 1,080 |
| 200,000 | 1,440 |
| 250,000 | 1,800 |
| 300,000 | 2,160 |
| 400,000 | 2,880 |
Formula
Clicks = impressions × CTRTotal cost = clicks × CPC = impressions × CPM ÷ 1,000CPM = CPC × CTR × 1,000Worked example
Inputs — Impressions: 200,000; Click-through rate (CTR): 1.2 %; Cost per click (CPC): $0.6.
Results — Clicks = 2,400; Total cost = $1,440.00; Cost per thousand impressions (CPM) = $7.20.
Frequently asked questions
How do I convert CPC to CPM?
CPM = CPC × CTR × 1,000 (with CTR as a decimal).
What is a good CTR?
Around 2–6% for search ads, 0.1–0.5% for display ads.
Which is better, CPC or CPM?
CPC suits performance campaigns; CPM suits awareness campaigns with high reach.
What formula does the CPC and CPM Calculator use?
Clicks = impressions × CTR.