CPM, or cost per mille, is the price of 1,000 ad impressions. It is the standard way to price display, video, social and podcast advertising. This CPM calculator works out any one of the three values, CPM, total cost or impressions, from the other two.
CPM Formulas
- CPM = total cost / impressions x 1,000
- Total cost = CPM x impressions / 1,000
- Impressions = total cost / CPM x 1,000
A campaign that costs $500 and delivers 100,000 impressions has a CPM of $5. At the same CPM, a $2,000 budget buys 400,000 impressions.
CPM Vs CPC Vs CPA
| Metric | You Pay For | Best For |
|---|---|---|
| CPM | Every 1,000 impressions | Awareness and reach |
| CPC | Each click | Website traffic |
| CPA | Each conversion | Leads and sales |
To compare a CPM buy with a CPC buy, convert using click-through rate: effective CPC = CPM / (CTR x 1,000). A $5 CPM with a 0.5% CTR works out to $1 per click.
Frequently Asked Questions
What is a good CPM?
CPMs vary widely by platform, audience, season and format. Broad display inventory can cost a few dollars per thousand, while targeted B2B audiences, connected TV and premium video often cost many times more. Compare CPM against results such as clicks and conversions rather than chasing the lowest number.
What is RPM?
RPM, revenue per mille, is the publisher side of CPM: the revenue a site or creator earns per 1,000 impressions or page views. The same formula applies, using earnings instead of cost.
How do I know if CPM ads are profitable?
Track revenue from the campaign and divide it by spend to get return on ad spend. Our ROAS calculator also shows the break-even point for your margin.
