CPC Calculator

Our CPC Calculator is a handy web development tool that helps advertisers and marketers to calculate the CPC (cost-per-click) based on CPM (cost per 1,000 impressions) and CTR (click-through rate).

What is CPC (Cost-per-Click)?

CPC is the short form of ‘Cost per click’. It’so also known as PPC (Pay per click). It defines the amount that a website publisher receives when a paid advertisement on the site is clicked.

What is CPM (Cost-per-Mile)?

CPM is the abbreviation of ‘Cost per thousand impressions’ (technically, “cost per mille”). CPM is a marketing term that denotes the price of 1,000 advertisement impressions on one web page. If a website publisher charges $2.00 CPM, that means someone has to pay $2.00 for every 1,000 impressions of its ad.

CPM is a common method for pricing web ads. The success of a CPM campaign is often measured by its click-through rate, which is the percentage of people who clicked on an ad.

What is CTR (Click-through-Rate)?

CTR, short for ‘Click-through rate’, is a metric that measures the number of clicks advertisers receive on their ads per number of impressions.  In other words, it represents the percentage of people who view your ad (impressions) and then actually go on to click the ad (clicks).

CPC formula

The formula for calculating CPC based on CTR and CPM is:

CPC = CPM / (1000 × CTR)

CPC calculation – An example

Given:

• CPM: 3
• CTR: 1.5%

CPC is:

• CPC = CPM / (1000 × CTR)
• CPC = 3 / (1000 x ( 1.5 / 100 )) = $0.2