How to calculate CPM
- Enter your ad spend and the numbers your ad platform reports: impressions, clicks, conversions and revenue. You only need the ones used in the CPM formula, but adding the rest fills in every other metric too.
- The CPM 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 CPM means
CPM stands for cost per mille, or cost per thousand impressions: what you pay for an ad to be shown 1,000 times. The formula is CPM = ad spend ÷ impressions × 1,000. Spend 1,500 for 250,000 impressions and your CPM is 6. Turned around, impressions = budget ÷ CPM × 1,000, so 1,000 at a CPM of 8 buys 125,000 impressions. CPM is how most display, video and social awareness campaigns are priced, and it rises with competition for the same audience, in the run-up to holidays and for narrow targeting.
A low CPM is only good if the impressions reach the right people and lead to clicks and sales, so read it together with CTR and CPA. Creative quality also matters: platforms often charge less for ads that people engage with. 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 CPM?
It varies widely. Social ads often range from about 5 to 15 in major markets; premium video and B2B audiences cost much more.
How do I calculate impressions from a budget?
Impressions = budget ÷ CPM × 1,000.
What is the difference between CPM and CPC?
CPM is the cost of 1,000 views; CPC is the cost of one click.