Free CPM calculator

CPM calculator

What are you paying for attention? Enter spend and impressions to get CPM, then add clicks to see CPC and CTR.

By Trueclip Updated

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CPM

Cost per 1,000 impressions

$10.00
CPC
$0.83
Cost per click
CTR
1.20%
Clicks ÷ impressions

How CPM is calculated

CPM scales your cost to a round 1,000 impressions so campaigns of any size compare fairly.

  • CPM

    Spend ÷ impressions × 1,000.

  • CPC

    Spend ÷ clicks.

  • CTR

    Clicks ÷ impressions × 100.

  • The link

    CPC = CPM ÷ (CTR × 10). Better CTR, cheaper clicks.

Worked example: $500 of ads
Ad spend
$500
÷ Impressions
50,000
× 1,000
CPM
$10.00
With 600 clicks: CPC $0.83 · CTR 1.20%

CPM formula, and working it backwards

One formula answers three questions, depending on which two numbers you already know.

You wantFormulaExample
CPMSpend ÷ impressions × 1,000$250 for 30,000 impressions = $8.33
CostCPM × impressions ÷ 1,000$10 CPM × 50,000 = $500
ImpressionsBudget ÷ CPM × 1,000$500 at a $10 CPM = 50,000
CTRClicks ÷ impressions × 100600 of 50,000 = 1.2%

What is a good CPM?

Judge CPM by what it produces, not on its own. The same CPM can be cheap or expensive.

SituationWhat it usually meansWhat to try
CPM up, CTR steadyAuction competition rose (season, audience)Broaden the audience or accept it for peak weeks
CPM steady, CTR downCreative fatigueRotate in new hooks and new clips
Low CPM, few salesCheap but unqualified reachTighten targeting or change placements
High CPM, strong CPAA valuable audienceKeep it; judge by CPA, not CPM

CPM, CPC and CTR

CPM tells you what attention costs. CTR and CPC tell you whether it was worth it.

MetricFormulaWhat it tells you
CPMSpend ÷ impressions × 1,000The price of reaching people
CTRClicks ÷ impressionsHow well the ad earns attention
CPCSpend ÷ clicksThe price of each visit
  • High CPM, high CTR

    Pricey audience, but the ad lands. Often fine.

  • Low CPM, low CTR

    Cheap reach that isn't paying attention. Change the creative.

  • Rising CPM

    Seasonal competition or a saturated audience. Broaden or refresh.

What moves your CPM

CPM is an auction price. These change it most.

  • Audience size

    Narrow audiences cost more to reach repeatedly.

  • Season

    Competition peaks around big sales and holidays.

  • Placement

    Feeds, stories and in-stream video are priced differently.

  • Ad quality

    Ads people engage with tend to win auctions more cheaply.

  • Country

    Prices differ a lot from one market to another.

  • Objective

    Optimising for purchases usually costs more per impression than for reach.

FAQ

Questions.

How do you calculate CPM?

Divide ad spend by impressions and multiply by 1,000. $500 for 50,000 impressions is a CPM of $10.

What does CPM stand for?

Cost per mille, where mille is Latin for thousand. It is what you pay for 1,000 ad impressions.

What is a good CPM?

There is no universal number. CPM varies widely by platform, country, audience, placement and season. Compare your CPM with your own history and judge it alongside CTR and CPA, not on its own.

What is the difference between CPM, CPC and CTR?

CPM is the cost of 1,000 impressions, CPC is the cost of one click, and CTR is the share of impressions that got a click. CPC equals CPM divided by (CTR × 10).

Is a low CPM always good?

No. Cheap impressions to people who never click or buy are expensive in the end. A higher CPM can be worth it if the audience converts well.

Why do CPMs rise in November and December?

More advertisers compete for the same audiences around holiday sales, so auction prices go up. Plan budgets and creative for higher costs in that period.

What does a CPM of 7 mean?

You pay $7 for every 1,000 times your ad is shown. At that rate, $70 buys 10,000 impressions and $700 buys 100,000.

Is an $8 CPM good?

It depends on the platform, country and audience, and on what the impressions produce. An $8 CPM that brings a strong click-through and conversion rate can beat a $4 CPM that nobody engages with.

How much does CPM cost per 1,000 views?

CPM is priced per 1,000 impressions, not views. An impression counts when the ad is shown; a view usually needs a few seconds of watching. For video, platforms often report cost per view (CPV) separately.

How do I work out impressions from a budget?

Divide the budget by the CPM and multiply by 1,000. A $500 budget at a $10 CPM buys about 50,000 impressions.

What is eCPM?

Effective CPM: what you effectively paid, or earned, per 1,000 impressions, whatever the buying model. Publishers use it to compare ad revenue; advertisers use it to compare campaigns bought on CPC or CPA.

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