Impressions
CPC
\$
CTR
%
Clicks
Total cost
\$
CPM
\$

# CPC and CPM Calculator

Our CPC and CPM calculator helps you figure out the real costs of your internet advertising.

## CPC advertising - how to calculate CPC

As previously mentioned, CPC is cost per click, so the formula for it is super simple: `CPC = total_cost / number_of_clicks`. You may also derive it from CPM and CTR: `CPC = (CPM / 1000) / (CTR / 100) = 0.1 * CPM / CTR`.

Nowadays, it's common that the model is not as straightforward as the one you see here. Advertisers often compete over the ad placement in a real-time bidding auction. Special algorithms take multiple factors (the CPC bid of each ad, its performance so far, what they know about the user) into account and try to predict actual revenue for every impression.

## How to calculate CTR

Again, this is a simple percentage formula: `CTR = 0.01 * number_of_clicks / number_of_impressions`. It's divided by 100 because it's expressed as a percentage.

It's always a dilemma whether to pick CPM or CPC. CPC is more closely tied to the value that the traffic brings. Going with CPM has its merits, too - it's more predictable for the publisher. It's possible that visits don't interest you much at all - you may treat display advertising as a way to increase brand awareness.

## Get the widget!

CPC and CPM Calculator can be embedded on your website to enrich the content you wrote and make it easier for your visitors to understand your message.

It is free, awesome and will keep people coming back!

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