Calculate cost per click (CPC) from your ad spend and clicks, see how many clicks a budget will buy, or convert a CPM price into an effective CPC using your click-through rate.
$750 spent for 600 clicks; and a $12 CPM ad with 0.9% CTR:
CPC
$750 ÷ 600 = $1.25
CPC from CPM
$12 ÷ (1,000 × 0.9%) = $1.33
CPC formulas
To find
Formula
CPC
total cost ÷ clicks
Clicks from a budget
budget ÷ CPC
CPC from CPM
CPM ÷ (1,000 × CTR)
$750 spent for 600 clicks is a CPC of $1.25. With the same $750 at a $1.25 CPC you get 600 clicks.
Turning CPM into CPC
Many campaigns are billed per 1,000 impressions, but what you really want to know is what each visitor costs. Divide the CPM by the number of clicks you get per 1,000 impressions:
Effective CPC = CPM ÷ (1,000 × CTR)
At a $12 CPM and a 0.9% CTR, 1,000 impressions bring 9 clicks, so each click costs $12 ÷ 9 = $1.33.
CPM
CTR 0.5%
CTR 1%
CTR 2%
CTR 3%
$5
$1.00
$0.50
$0.25
$0.17
$10
$2.00
$1.00
$0.50
$0.33
$15
$3.00
$1.50
$0.75
$0.50
$20
$4.00
$2.00
$1.00
$0.67
The table shows why click-through rate matters so much: at the same CPM, raising CTR from 1% to 2% halves what each click costs.
What affects CPC
Competition for the keyword or audience. Search keywords with buyer intent, such as software, insurance and legal terms, are among the most expensive.
Ad relevance. Platforms such as Google Ads use quality signals, so a relevant ad and landing page can pay less per click.
Targeting and placement. Narrow audiences and premium placements cost more.
Season and country.
How much can you afford per click?
Work backwards from what a customer is worth:
Maximum CPC = profit per sale × conversion rate
If a sale brings $60 of gross profit and 2% of visitors buy, each click is worth $60 × 0.02 = $1.20. Paying more than that per click loses money on the first sale. The CPA calculator does the same maths from the other direction.
Frequently asked questions
How do you calculate cost per click?+
Divide the total ad cost by the number of clicks. $750 for 600 clicks is a CPC of $1.25.
How do I convert CPM to CPC?+
Divide the CPM by 1,000 times the CTR. A $12 CPM with a 0.9% CTR gives a CPC of about $1.33.
What is a good CPC?+
One that is below what a click is worth to you: profit per sale multiplied by conversion rate. CPCs vary too much between industries for one benchmark to be useful.
Is CPC the same as cost per conversion?+
No. CPC is the cost of a click. Cost per conversion, or CPA, is the cost of a sale or sign-up, which usually takes many clicks.
How can I lower my CPC?+
Improve ad relevance and CTR, refine targeting, add negative keywords in search campaigns, and test placements. A better CTR at the same CPM directly lowers CPC.
Results are estimates based on the numbers you enter and are for planning only. Platform payouts, ad prices and fees change;
check the official dashboard or provider for your actual figures. Read how we build and check our calculators.