How to Calculate CPM (Cost per Thousand Impressions)

Cost per Thousand Impressions (CPM) is calculated dividing cost by impressions, and multiplying it by 1000, or multiplying CTR by CPC by 1000. This is the formula to calculate CPM:

CPM = Cost x 1000
CPM = CTR x CPC x 1000

Example of CPM calculation

If a campaign costs 520€ and has 12.000 impressions, then CPM gets calculated like this:

CPM = 520€ x 1000
CPM = 43,33€

If a campaign has 2% CTR (2/100 = 0,02) and 0,34€ CPC, then CPM gets calculated this way:

CPM = 0,02 x 0,34€ x 1000
CPM = 6,8€

CPM Calculator

Use our PPC Calculator to automatically calculate CPM and other Google Adwords metrics.

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  1. 2017-06-20 Ann Kurian

    Can you please explain how to calculate CPM with an example?

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