CPM Calculator
CPM = ad cost ÷ impressions × 1,000. $2,500 for 400,000 impressions is a $6.25 CPM.
Google Ads: Cost · Meta: Amount spent
Google Ads / Meta: Impressions
Adds the effective cost per click
CPM = $2,500 ÷ 400,000 × 1,000 = $6.25
CPC = $6.25 ÷ (1,000 × 0.5%) = $1.25
Cheaper reach than the Meta accounts we manage average. Check the CTR before celebrating: cheap impressions that nobody clicks are expensive clicks.
Compared with the $11.54 average Meta CPM in our PPC benchmarks.
A $6.25 CPM at a 0.5% CTR is a $1.25 click. See whether creative or targeting is setting that price: free 47-point ad audit, five business days, no sales call.
Get my auditHow to calculate CPM
CPM is the price of 1,000 ad impressions. Divide what you spent by the impressions it bought, then multiply by 1,000. For what CPM means and when it is the right metric, see our glossary entry on CPM.
| Step | Example | Where to find it |
|---|---|---|
| Ad cost | $2,500 | Google Ads: Cost · Meta: Amount spent |
| Impressions | 400,000 | Google Ads / Meta: Impressions |
| CPM | 2,500 ÷ 400,000 × 1,000 = $6.25 | Meta: CPM column · Google Ads: Avg. CPM |
Work backwards: budget or impressions from CPM
The same formula solves for the other two. To plan reach from a budget, divide the budget by the CPM and multiply by 1,000: $1,000 at a $6.25 CPM buys 160,000 impressions. To price a reach target, multiply CPM by impressions and divide by 1,000: 250,000 impressions at an $8.40 CPM cost $2,100. The buttons above the calculator switch between the three.
ad cost = CPM × impressions ÷ 1,000
From CPM to CPC: why a cheap CPM can still be expensive
CPM prices attention, not action. What you pay per click depends on how many of those impressions turn into clicks (your CTR): CPC = CPM ÷ (1,000 × CTR). A $6.25 CPM at a 0.5% CTR is a $1.25 click. A $4 CPM with a 0.3% CTR works out to $1.33 per click, while an $8 CPM with a 1.2% CTR is $0.67: the more expensive impressions are the cheaper clicks.
For reference, the Meta accounts iClick manages average an $11.54 CPM (iClick portfolio). Audience size, season and creative all move it. Read CPM next to frequency too: a falling CPM with a rising frequency usually means the same people are seeing the ad again.
CPM vs CPC vs CPA
| Metric | What you pay for | Formula |
|---|---|---|
| CPM | 1,000 impressions | cost ÷ impressions × 1,000 |
| CPC | One click | cost ÷ clicks, or CPM ÷ (1,000 × CTR) |
| CPA | One conversion | cost ÷ conversions, or CPC ÷ conversion rate |
Each step down the table folds in another rate: CTR turns CPM into CPC, and conversion rate turns CPC into CPA. To see what a budget buys at your CPC and conversion rate, use the Google Ads budget calculator.
CPM questions
How do you calculate CPM?
Divide total ad cost by impressions, then multiply by 1,000. $2,500 for 400,000 impressions is a $6.25 CPM.
What does CPM stand for?
Cost per mille: the cost of 1,000 impressions. "Mille" is Latin for thousand.
Is a lower CPM always better?
No. CPM prices attention, not results. A $4 CPM with a 0.3% CTR works out to a $1.33 click; an $8 CPM with a 1.2% CTR works out to $0.67. Judge CPM together with CTR and conversion rate.
How do I turn CPM into CPC?
CPC = CPM ÷ (1,000 × CTR). At a $6.25 CPM and a 0.5% CTR, each click costs $1.25.
Built by the iClick team · Reviewed by Anirban, Social Media Strategist · Updated
