CPM calculator
This calculator needs JavaScript. The formula and the worked example on this page show how it works.
Result
Enter a value above 0 in each field.
Formula
CPMCPM (cost per thousand impressions)The cost of showing an ad 1,000 times. Glossary = ad spend / impressions x 1,000
How do you calculate CPM?
CPM stands for cost per mille, where mille is Latin for thousand. It is the price of 1,000 ad impressions. To calculate it, divide the total ad spend by the number of impressions and multiply the result by 1,000.
The same formula can be rearranged. If you know the CPM and the number of impressions, multiply them and divide by 1,000 to get the spend. If you know the budget and the CPM, divide the budget by the CPM and multiply by 1,000 to get the impressions it buys.
Example (made-up numbers)
Ad spend of $1,000 and 100,000 impressions: $1,000 / 100,000 x 1,000 = $10.00 CPM.
A $10.00 CPM and 200,000 impressions: $10.00 x 200,000 / 1,000 = $2,000.00 of ad spend.
A $1,000 budget at a $10.00 CPM: $1,000 / $10.00 x 1,000 = 100,000 impressions.
How to use the CPM calculator
- Pick what you want to find: CPM, ad spend or impressions.
- Enter the two values the calculator asks for. Use the totals for the same campaign and the same date range.
- Read the result as you type. Change any input to see how the result moves.
- Use Copy result to paste the figure into a report, or Clear inputs to start again.
Take impressions and spend from the same report in your ad platform. Mixing a spend figure from one date range with impressions from another gives a CPM that never happened.
How to read the result
CPM tells you what you paid for reach, not what you paid for results. Two campaigns with the same CPM can produce very different numbers of clicks and leads, because the click-through rate and the landing page conversion rateConversion rateThe share of leads that turn into the outcome the end client wants, such as a booked appointment, a sold job or a signed case. Glossary decide what those impressions turn into.
Use CPM to compare placements, audiences or time periods that you buy on an impression basis. To see what the same traffic costs per click, take the CPM and the click-through rate to the CPC calculator. To judge the campaign on revenue, use the ROAS calculator.
Common CPM mistakes
- Forgetting the 1,000. Spend divided by impressions is the cost of one impression. CPM is that figure times 1,000.
- Comparing CPMs across different goals. A campaign bought for clicks and one bought for reach are priced for different outcomes, so their CPMs are not a fair comparison.
- Judging a traffic source on CPM alone. A low CPM can still produce expensive leads if few people click or convert. Check cost per click and cost per lead as well.
- Mixing currencies or tax. Use spend in one currency, with or without fees and tax, the same way across every campaign you compare.
Embed this calculator
You can add this CPM calculator to your own site. Copy the code below and paste it into your page. It loads the calculator in a frame and includes a credit link to this page.
Frequently asked questions
How do you calculate CPM?
Divide the total ad spend by the number of impressions, then multiply by 1,000. For example, $1,000 of spend over 100,000 impressions is a $10.00 CPM.
What does CPM stand for?
CPM stands for cost per mille, which means cost per thousand. It is the price of 1,000 ad impressions.
Is a lower CPM always better?
No. A lower CPM buys more impressions for the same money, but it says nothing about clicks or leads. Compare cost per click and cost per lead before you move budget to a cheaper placement.
How is CPM different from CPC?
CPM is the cost of 1,000 impressions. CPC is the cost of one click. You can turn a CPM into a CPC by dividing it by 1,000 times the click-through rate, which the CPC calculator does for you.
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