How to calculate CPC
- Enter your ad spend and the numbers your ad platform reports: impressions, clicks, conversions and revenue. You only need the ones used in the CPC formula, but adding the rest fills in every other metric too.
- The CPC card is highlighted at the top, with the formula's inputs underneath.
- Add your gross margin to see whether the campaign is actually profitable after ad costs, and use the planner to estimate the budget for a target.
What CPC means
CPC, cost per click, is the average amount you pay each time someone clicks your ad. It is the main pricing model for search ads such as Google and Bing, and a key efficiency measure on social platforms. The formula is CPC = ad spend ÷ clicks. Spend 1,500 for 3,000 clicks and the CPC is 0.50. CPC is also linked to CPM and click-through rate: CPC = CPM ÷ (CTR × 1,000), so a more engaging ad with a higher CTR lowers your cost per click for the same CPM.
The CPC you can afford depends on what happens after the click: with a 3% conversion rate and a profit of 30 per sale, each click is worth 0.90, so any CPC below that is profitable. The CPA card shows the cost per sale that results. Compare a metric with your own past campaigns before comparing it with industry averages, which vary enormously by platform, country, season and audience. Every calculation happens in your browser; your campaign data is not uploaded.
FAQ
What is a good CPC?
Any CPC below the value of a click: conversion rate × profit per conversion. Benchmarks vary by keyword and industry.
How can I lower my CPC?
Improve ad relevance and click-through rate, refine targeting and keywords, and test new creative.
Is CPC the same as PPC?
PPC (pay per click) is the advertising model; CPC is the price you pay for each click.