marketingmathcalc

CPM calculator

CPM is the cost of 1,000 ad impressions: divide the total cost by the number of impressions, then multiply by 1,000. A campaign that cost $2,400 for 800,000 impressions has a CPM of $3.00. Enter any two of cost, impressions and CPM and the calculator finds the third.

Last updated by Marketing Math Calc, published by AUSSIE-AI LTD

Solve for: tap the figure you want to find
=÷× 1,000

What you paid, or plan to pay, for the impressions.

Times the ad was shown. 250k and 1.5m work too.

Cost per 1,000 impressions.

How to use it

Tap the figure you want to find in the equation at the top of the calculator: CPM, cost or impressions. The two boxes you need then appear. Type numbers the way they appear in your ads dashboard; commas between thousands are fine, and you can shorten big counts to 250k or 1.5m.

The currency menu only changes the symbol shown next to money figures. It does not convert between currencies, so enter every amount in the same currency.

The formula

The M in CPM is the Roman numeral for 1,000, so CPM means "cost per mille". Google Ads defines it as paying per one thousand views of an ad. Three versions of the same relationship cover every direction:

CPM = cost ÷ impressions × 1,000

Cost = CPM × impressions ÷ 1,000

Impressions = cost ÷ CPM × 1,000

Worked examples

Finding CPM. A display campaign spent $2,400 and served 800,000 impressions. $2,400 ÷ 800,000 = $0.003 per impression, and $0.003 × 1,000 = $3.00 CPM.

Finding impressions from a budget. A publisher quotes $4.20 CPM and you have $500. $500 ÷ $4.20 × 1,000 = 119,047.6, so the budget buys about 119,048 impressions. Impressions come in whole numbers, so the calculator rounds and shows you the exact figure underneath.

Finding the cost of a placement. A newsletter sponsor offers 250,000 impressions at $6.50 CPM. $6.50 × 250,000 ÷ 1,000 = $1,625.00. Each impression costs $0.0065.

CostImpressionsCPM
$2,400800,000$3.00
$500119,048$4.20
$1,625250,000$6.50

CPM, cost per impression and eCPM

Cost per impression is CPM divided by 1,000. It is usually a fraction of a cent, which is why buyers quote the thousand-impression price instead. The calculator shows both.

eCPM, or effective CPM, uses the same formula for campaigns bought some other way. If you paid per click, divide what you spent by the impressions you received and multiply by 1,000, and you can compare that campaign with one bought on CPM. Publishers use the same sum with revenue in place of cost to see what they earned per 1,000 impressions.

Mistakes that skew a CPM

  • Mixing periods. Cost from the whole month with impressions from one week gives a CPM four times too high. Take both from the same date range.
  • Forgetting the 1,000. Cost ÷ impressions on its own is the cost of one impression. If your answer looks 1,000 times too small, the multiplication is missing.
  • Viewable versus served. Google Ads offers viewable CPM (vCPM) bidding, where you pay only when the ad could be seen. A vCPM and a CPM based on every served impression count different things, so compare like with like.
  • Fees. If an agency or platform fee sits on top of media cost, decide whether your "cost" includes it, and do the same for every campaign you compare.

How this calculator handles your numbers

Every figure you type is turned into an exact fraction before any division, so the result does not pick up floating-point noise. Money is rounded to two decimals at the end, half away from zero, and a cost that would show as $0.00 is given to four decimals instead. Impression counts are rounded to the nearest whole number. Zero impressions or a zero CPM, where a division would be meaningless, get a plain message instead of an answer.

Questions

How do I calculate CPM?

Divide the total cost by the number of impressions and multiply by 1,000. $1,500 for 600,000 impressions is $1,500 ÷ 600,000 × 1,000 = $2.50 CPM.

Is CPM the cost per 1,000 impressions?

Yes. CPM stands for cost per mille, and mille is Latin for thousand. A $7 CPM means 1,000 impressions cost $7, and one impression costs $0.007.

What does a CPM of 7 mean?

You pay 7 units of currency for every 1,000 times the ad is shown. With a $700 budget at that rate you would get 100,000 impressions.

How many impressions will my budget buy?

Divide the budget by the CPM and multiply by 1,000. Pick "Impressions" in the calculator, then type your budget and the CPM you expect to pay.

Is a lower CPM always better?

Not by itself. A cheap CPM on an audience that never clicks or buys can cost more per customer than an expensive one that converts. Follow the numbers through to cost per click and cost per acquisition before deciding.

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