Ad CPM and CPC Calculator
Written by Thierno Sadou Diallo, formula verified per our methodology • Last checked on 9/3/2026
CPM is calculated by dividing ad spend by the number of impressions, then multiplying by 1,000. CPC is calculated by dividing spend by the number of clicks. Example: €500 for 250,000 impressions and 5,000 clicks gives a CPM of €2 and a CPC of €0.10.
Explanation
CPM (cost per mille, from the Latin for thousand) and CPC (cost per click) measure two different things about the same ad campaign. CPM relates spend to the number of times the ad was SEEN (impressions), regardless of whether it triggered any action — it's the go-to metric for an awareness campaign, where the goal is to be seen rather than clicked. CPC relates spend to the number of actual CLICKS obtained, a more relevant metric for a traffic- or performance-oriented campaign. Click-through rate (CTR), calculated here as well, connects the two: it's the share of impressions that actually generated a click, and it helps check whether a low CPM is simply hiding a very low CTR (the ad is seen cheaply, but nobody clicks). These three metrics all sit upstream of an actual conversion (a sale, a sign-up): for cost per conversion, see our marketing conversion rate calculator.
Example: a €500 campaign with 250,000 impressions and 5,000 clicks
Inputs
Spend: €500. Impressions: 250,000. Clicks: 5,000.
Calculation
CPM = (500 ÷ 250,000) × 1,000 = 0.002 × 1,000 = €2. CPC = 500 ÷ 5,000 = €0.10. CTR = (5,000 ÷ 250,000) × 100 = 2%.
Result
This campaign has a CPM of €2, a CPC of €0.10, and a CTR of 2%.
Frequently asked questions
Which metric should I prioritize, CPM or CPC?
It depends on the campaign's goal. CPM suits an awareness goal better (being seen by as many people as possible at the best cost), CPC suits a traffic or performance goal (getting actual visits to the site). A campaign can have a low CPM but a high CPC if few people click, or the reverse.
What counts as a good click-through rate (CTR)?
This varies enormously by ad format, industry, and platform (search, social, display). There's no universal threshold: always compare a campaign's CTR to your own past campaigns or to your industry's benchmarks, rather than to a generic number.
Does a low CPM mean the campaign is doing well?
Not necessarily: a low CPM only means each impression is cheap, not that those impressions are generating results. Always check the CTR and, ultimately, the cost per conversion (see our marketing conversion rate calculator) to assess a campaign's real performance.