CPC Calculator
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How to calculate CPC
As previously mentioned, CPC is cost per click, so the formula of how to calculate CPC is super simple:
CPC = total_cost / number_of_clicks
You may also derive it from CPM and CTR:
CPC = (CPM / 1000) / (CTR / 100) = 0.1 × CPM / CTR
Nowadays, the standard model is often not as straightforward as the one you see here. CPC advertisers often compete over the ad placement in a real-time bidding auction. Special algorithms take multiple factors (the CPC bid of each ad, its performance so far, what they know about the user) into account and try to predict actual revenue for every impression.
If you have a lot of CPC and CPM calculations to perform, our tool will save you time.
Frequently Asked Question
1. What is a good CPC?
A “good” CPC depends on your industry and the lifetime value of a customer. For example, a $2.00 CPC is excellent in the legal industry but may be high for e-commerce.
2. How do I lower my CPC?
You can lower your CPC by improving your ad relevance, increasing your Click-Through Rate (CTR), and optimizing your landing pages to improve your platform Quality Score.
3. Is CPC more important than CPM?
CPC is better for direct-response marketing (sales and leads), while CPM (Cost Per Mille) is better for brand awareness and reach.
4. How do you calculate CPC?
Cost-per-click, or CPC, is calculated by dividing the advertising cost by the number of clicks generated by an advertisement.
5. What is the formula for calculating CPC?
What is the formula for calculating CPC?
CPC = Advertising cost / Number of clicks
