# CPM Calculator

This is an online CPM calculator that helps webmasters to determine your advertising costs, cost per 1,000 impressions (CPM), and the number of exposures (Ad impressions)..

## What is an ‘Impression’?

An ad impression (aka. ad view) means the number of times an individual advertisement is displayed. It is used in online advertising, which often pays on a per-impression basis. Note that impressions are not a measure of whether an advertisement has been clicked on, only that is was displayed, which leads to some debate as to how accurate the metric is.

## What is CPM?

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.

## How to calculate CPM?

CPM is defined as the cost per thousand impressions. Therefore, the formula for CPM simply divides the cost by the number of impressions divided by a thousand, which is:

`CPM = 1000 * cost / impressions`

By re-arranging the variables, you obtain the formulas below for obtaining the campaign cost and impressions.:

`Campaign cost = CPM * impressions / 1000`

`Impressions = 1000 * cost / CPM`

## CPM example

Given:

• Campaign cost: \$1,500
• I have 65,000 impressions

The CPM is:

• `CPM = 1000 * cost / impressions`
• `CPM = 1000 * 1,500 / 65,000`
• `CPM = \$23.08`

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