CPM Calculator

Calculate CPM (Cost Per Thousand Impressions)

CPM stands for Cost per Mille and is used to measure the cost per one thousand impressions on digital advertising. Follow the steps below and use our free impressions calculator to calculate CPM.

  1. Enter your campaigns total cost:
    In order to determine your CPM you must first take a look at your total ad spend for the campaign.

  2. Enter your total number of impressions:
    Impressions are the total amount of times your advertisement was displayed to someone. This is also not limited to one per person. Example: If Bob saw your ad one time and Mary saw your ad 3 times you would see that you have 4 impressions.

  3. Click calculate
    After entering your campaign cost and total number of impressions our CPM calculator will display that campaigns CPM or cost per 1,000 impressions. You can learn more about CPM and other KPIs below.

Other helpful calculators:

CPM (Cost Per Mille) Calculator

Frequently Asked Questions about CPM Calculator

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What is the CPM Formula?

(Total Cost / Total Impressions ) x 1,000 = CPM

The CPM formula our calculator uses starts by you dividing your total ad cost by the number of impressions that ad received. This will give you the cost per 1 impression. To calculate CPM you then need to take the number you just got and multiply it by 1,000 to get cost per 1,000 impressions.

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What is a Good CPM?

There are two ways to determine a good CPM with the later being far more important. To determine if you're overspending or not to get impressions on your ads you can first look at industry averages. For example we know that general retail CPM is $1.39. That being said, if you're paying more than that something might be wrong.

The second way to determine a good CPM is by using your own sales data. Here's the information you'll need. If you need help getting these numbers use our free ppc calculators.

  1. Earnings per page view
  2. CPM (Cost per impression)
  3. CTR (Click through rate)
  4. CPC (Cost per click)

Here's an example:
Earnings per page view: 2% of people buy a $100 product
CPM: $5
CTR: 2%
CPC: $0.50

With this example it costs you $5 for your ad to be shown 1,000 times. Out of those 1,000 impressions you get 20 clicks to your website because you have a 2% CTR.

If your average order value is $100 and your conversion rate is 2% that means you make $50 every 50 clicks or so. Which equates to an earnings per page view of $1 (50 clicks equals $50 or 1 click equals $1).

Now you know that it costs you $5 in ads for $20 in profit before Cost of Goods or any other fees. This CPM would then be considered good.

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Why is my CPM so high?

High CPMs can lead to an inability to keep your ads profitable. Which is a big problem for any business trying to get leads or sales from paid advertising.

There are a few main reason why your CPM is high. The first is your Quality Score/ Relevance Score. Both Facebook and Google use these metrics to determine two things. The quality of the landing page you are bringing your customers to and how relevant the ad is to the people you targeted.

If either of these are lower than average your CPM will be higher than normal.

The second reason your CPM could be high is because of the people you are targeting and how your competition inflates the price. If you're targeting a broader audience of lets say 2 million there's a good chance your CPM will be lower than if you targeted a very specific group of 25,000 people.

There's only a limited amount of space either Google or Facebook can fit an ad in on their platform that your customer will see. If you limit the amount of people they can display the ad to and there are hundreds of other advertisers trying to get in front of that same small group of people the CPM cost will rise. There's just simply not enough space to fit everyone's ads.

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