CPM Calculator
Work out cost per mille — the price of 1,000 ad impressions — or the budget or impressions you get for a given CPM.
What is CPM?
CPM (cost per mille, from the Latin for “thousand”) is the price an advertiser pays for 1,000 impressions of an ad. It is the standard pricing model for display, video and social campaigns bought for reach rather than clicks.
CPM formulas
total cost = CPM × impressions ÷ 1,000
impressions = total cost ÷ CPM × 1,000
Example: a campaign costs 1,700 and delivers 200,000 impressions. CPM = 1,700 ÷ 200,000 × 1,000 = 8.50.
How to use the calculator
- Choose what to calculate: CPM, Total cost or Impressions.
- Enter the two other values. The result updates as you type.
- Add your expected click-through rate (CTR) to see what the CPM means per click.
CPM vs. CPC
With CPM you pay for views; with CPC you pay only when someone clicks. At a given click-through rate the two are linked: CPC = CPM ÷ (1,000 × CTR). A CPM of 8.50 with a 1.2% CTR works out to about 0.71 per click — useful when comparing offers priced in different ways.
What affects CPM
Audience targeting, ad format, placement, season and competition for the same audience all move CPM. Narrow, high-value audiences and the run-up to major shopping holidays usually cost more per thousand impressions.
Frequently asked questions
What does CPM stand for?
Cost per mille — the cost of 1,000 ad impressions. “Mille” is Latin for thousand.
How do I calculate CPM?
Divide the total cost of the campaign by the number of impressions and multiply by 1,000.
How many impressions will my budget buy?
Divide the budget by the CPM and multiply by 1,000. With 500 and a CPM of 5, you get 100,000 impressions.
Is a lower CPM always better?
Not necessarily. Cheap impressions in the wrong audience or poor placements may never lead to clicks or sales. Compare cost per result as well.