Work out CPM alongside CPC, CTR, CPA, conversion rate and return on ad spend from one set of campaign numbers.
The method behind this calculator
CPM is the cost of a thousand impressions and is the standard currency for awareness advertising, where the aim is to be seen rather than clicked. On its own it says nothing about whether the campaign worked.
That is why the full funnel is shown alongside: impressions to clicks to conversions to revenue. A low CPM with a poor click-through rate is worse than a higher CPM that reaches the right people.
A worked example
As an example, with a revenue generated of 9,000, the calculator returns a CPM of $5. Underneath, Cost per click comes out at $0.42 and Click-through rate at 1.2%. Change any field and every figure updates as you type.
Getting your answer
- Enter your total spend and impressions delivered.
- Add clicks and conversions from the same period.
- Add revenue to see return on ad spend.
Formula reference
CPM = cost ÷ impressions × 1,000
CPC = cost ÷ clicks · CTR = clicks ÷ impressions
CPA = cost ÷ conversions · ROAS = revenue ÷ cost
FAQ
What is a good CPM?
It varies enormously by platform, audience and season. Compare against your own historical figures rather than any published benchmark.
Is CPM better than CPC?
Neither is inherently better. CPM suits awareness campaigns; CPC suits direct response where you only want to pay for engagement.
What ROAS should I aim for?
Enough to cover margin and overhead. A product with a 30% margin needs a much higher ROAS than one with an 80% margin to be profitable.