CPM Calculator
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CPM is the cost of 1,000 ad impressions: CPM = cost ÷ impressions × 1,000. A $500 campaign that gets 125,000 impressions has a CPM of $4.00. Enter any two of cost, impressions and CPM to find the third.
Adds click-through rate and cost per click.
| Campaign | |
| Total cost | $500.00 |
| Impressions | 125,000 |
| CPM | $4.00 |
| Cost per impression | $0.0040 |
| Clicks | |
| Clicks | 1,250 |
| Click-through rate (CTR) | 1% |
| Cost per click (CPC) | $0.40 |
Show steps
- CPM = cost / impressions x 1,000 = $500.00 / 125,000 x 1,000 = $4.00.
- CTR = clicks / impressions = 1,250 / 125,000 = 1%.
- CPC = cost / clicks = $500.00 / 1,250 = $0.40.
How to use the CPM calculator
- Choose what you want to find: the CPM, the total cost or the number of impressions.
- Enter the two values you know. The cost is what you paid for the ads; an impression is one view of the ad.
- Add the number of clicks if you want the click-through rate and cost per click.
- Press Calculate. Open Show steps to see the formula with your numbers.
CPM formula
CPM stands for cost per mille, Latin for cost per thousand. It is the price of 1,000 impressions:
- CPM = total cost ÷ impressions × 1,000
- Total cost = CPM × impressions ÷ 1,000
- Impressions = total cost ÷ CPM × 1,000
Multiplying by 1,000 turns a tiny cost per impression into a number that is easy to compare. A cost of $0.004 per impression is the same as a $4.00 CPM.
Worked examples
| Question | Work | Answer |
|---|---|---|
| $500 buys 125,000 impressions. What is the CPM? | 500 ÷ 125,000 × 1,000 | $4.00 |
| A site charges a $12 CPM. What do 250,000 impressions cost? | 12 × 250,000 ÷ 1,000 | $3,000 |
| You have $900 and the CPM is $7.50. How many impressions? | 900 ÷ 7.50 × 1,000 | 120,000 |
| The ad above gets 1,800 clicks. What are CTR and CPC? | 1,800 ÷ 120,000; 900 ÷ 1,800 | 1.5%; $0.50 |
CPM, CPC, CPA and eCPM
CPM prices views. Other ad metrics price different results, and you can convert between them when you know the rates in between.
- CPC (cost per click) = cost ÷ clicks. Since clicks = impressions × CTR, CPC = CPM ÷ (1,000 × CTR). A $4 CPM with a 1% CTR gives a $0.40 CPC.
- CPA (cost per acquisition) = cost ÷ conversions, such as sales or sign-ups.
- eCPM (effective CPM) is what publishers earn per 1,000 impressions: revenue ÷ impressions × 1,000. It uses the same formula with earnings in place of cost.
CPM by budget and rate
| Budget | $2 CPM | $5 CPM | $10 CPM | $20 CPM |
|---|---|---|---|---|
| $100 | 50,000 | 20,000 | 10,000 | 5,000 |
| $500 | 250,000 | 100,000 | 50,000 | 25,000 |
| $1,000 | 500,000 | 200,000 | 100,000 | 50,000 |
| $5,000 | 2,500,000 | 1,000,000 | 500,000 | 250,000 |
Each cell is the number of impressions the budget buys.
Common CPM mistakes
- Forgetting the 1,000. Cost ÷ impressions is the cost per single impression, not the CPM.
- Comparing CPMs across goals. A low CPM is not a good deal if the people who see the ad rarely click or buy. Compare CPC or CPA for that.
- Mixing impressions and reach. Reach counts people; impressions count views, so one person can make many impressions.
CPM practice quiz: 10 questions
Test yourself with 10 multiple-choice questions. Choose an answer and press Submit to see if you are right and why. Your score appears at the end.
CPM = 600 ÷ 200,000 × 1,000 = $3.00. $0.003 is the cost of one impression, before multiplying by 1,000.
CPM is cost per mille. Mille is Latin for thousand, so it is the cost of 1,000 impressions.
1,000 impressions cost $5 and bring 2% × 1,000 = 20 clicks. CPC = $5 ÷ 20 = $0.25.
Impressions = cost ÷ CPM × 1,000, so impressions grow in proportion to the budget. Twice the money buys twice the impressions.
CPC = CPM ÷ (1,000 × CTR). A: 4 ÷ 5 = $0.80. B: 6 ÷ 15 = $0.40. B costs more per view but less per click.
Impressions count every view (3); reach counts different people (1). CPM is priced on impressions.
Quiz complete
Frequently asked questions
How do you calculate CPM?
Divide the total ad cost by the number of impressions and multiply by 1,000. For example, $500 ÷ 125,000 × 1,000 = $4.00 CPM.
What is a good CPM?
It depends on the platform, audience and season, so compare CPMs within the same channel and goal. A cheap CPM is only good if the ad also brings clicks or sales at a cost you can afford.
How do you convert CPM to CPC?
Divide the CPM by 1,000 times the click-through rate. With a $6 CPM and a 1.5% CTR, CPC = 6 ÷ 15 = $0.40.
Is CPM the same as eCPM?
They use the same formula. CPM usually describes what an advertiser pays per 1,000 impressions; eCPM describes what a publisher earns per 1,000 impressions from all ad types.
Why is CPM per thousand and not per impression?
One impression costs a fraction of a cent, which is hard to read and compare. Pricing per 1,000 gives numbers like $4.00 instead of $0.004.
Sources
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