How to Calculate CPM and CPC

What is CPM and CPC?

CPM (Cost Per Mille) is the price paid per 1,000 ad impressions. CPC (Cost Per Click) is the price paid each time someone clicks an ad. CPM is used for awareness campaigns; CPC is used for performance/direct response campaigns where clicks and conversions matter.

Formula

Effective CPM (eCPM) = Revenue / Impressions × 1,000 (publisher perspective)

CPM: Revenue / Impressions × 1 — Revenue / Impressions × 1

Step-by-Step Guide

1CPM: Impressions = Budget / CPM × 1,000
2CPC: Clicks = Budget / CPC
3Effective CPM (eCPM) = Revenue / Impressions × 1,000 (publisher perspective)
4CTR (click-through rate) = Clicks / Impressions × 100

Worked Examples

Input

£1,000 budget at £5 CPM

Result

200,000 impressions

£1,000 / £5 × 1,000 = 200,000

Input

£500 budget at £0.50 CPC

Result

1,000 clicks

£500 / £0.50 = 1,000 clicks

Frequently Asked Questions

What is Cpm Cpc?

CPM (Cost Per Mille) is the price paid per 1,000 ad impressions. CPC (Cost Per Click) is the price paid each time someone clicks an ad

How accurate is the Cpm Cpc calculator?

The calculator uses the standard published formula for cpm cpc. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

What units does the Cpm Cpc calculator use?

Enter values in the units shown in each input field. The calculator displays results in standard units and shows the calculation steps.

What formula does the Cpm Cpc calculator use?

The core formula is: CPM: Impressions = Budget / CPM × 1,000. Each step in the calculation is shown so you can verify the result manually.

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