Which is better: CPC or CPM?

It depends on your CTR. If you have a high CTR (above 2%), buying on a CPM basis is usually more cost-effective. For low CTR campaigns, CPC is safer as you only pay for actual engagement.

CPC / CPM Calculator

Universal tool for PPC campaigns. Enter any 2-3 values and the rest will be calculated automatically.

Budget (€/$)

Total campaign cost

Impressions

Number of ad views

Clicks

Number of clicks

CPM (€/$)

Cost per thousand impressions

CPC (€/$)

Cost per click

CTR (%)

Click-through rate

Results

CPM

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CPC

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CTR

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Clicks (count)

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Formulas


CPM = (Spend / Impressions) × 1000

CPC = Spend / Clicks

CTR = (Clicks / Impressions) × 100

CPC = CPM / (CTR × 10)

Example

$1,000 budget, 200,000 impressions, 3,000 clicks:
CPM = (1000 / 200000) × 1000 = $5.00
CPC = 1000 / 3000 = $0.33
CTR = (3000 / 200000) × 100 = 1.5%

When to use CPM vs CPC

High CTR creative: Buy on CPM (you get cheaper clicks)
Low CTR creative: Buy on CPC (you only pay for clicks)
Brand awareness: CPM (you pay for reach, not engagement)
Performance campaigns: CPC or CPA (you pay for results)

Pro tip: If your CTR is above 2%, CPM buying is usually more profitable than CPC.

Frequently Asked Questions (FAQ)

Which values should I enter?

The CPM / CPC calculator works by recalculating based on input. Just enter any 2 to 3 known values (e.g., Spend and Clicks) and the rest (CPC, CPM, CTR) will be calculated automatically.

Why is my CPC unrealistic?

Check if you entered too few clicks for a high spend, or a CTR that is too low. The relationship between CPM, CPC, and CTR is mathematically fixed – if one variable is off, the result will be skewed.

How to convert CPM to CPC?

The CPM / CPC formula is simple: CPC = CPM / (CTR × 10). If you have CPM $5 and CTR 1%, then CPC = 5 / (1 × 10) = $0.50. This calculator does it for you.

Why it matters

CPC and CPM are the building blocks of every PPC campaign. Understanding the relationship between them (via CTR) allows you to better negotiate prices and optimize creatives.

PPC Golden Rule: If you know your creative has above-average CTR (people like clicking on it), it pays off to buy on CPM basis because you effectively get cheaper clicks (CPC) than if you paid for clicks directly. Conversely, with poor creative, it's safer to pay for CPC.

CPC / CPM Calculator

Results

Formulas

Example

When to use CPM vs CPC

Frequently Asked Questions (FAQ)

Why it matters

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