How to Calculate CPC for Advertisement - Tutorial

How to Calculate Cost Per Click (CPC) - Definition, Tutorial, Formula, Example

Definition:

CPC stands for Cost Per Click. It refers to the cost paid for every click on an advertisement banner displayed in a website. This tutorial explains you how to calculate the value of cost per click (cpc).

Formula :
CPC = CPM / (1000 x CTR)
Where,
CPM = Cost per Mille CPC = Cost per Click CTR = Click Through Rate
Example:

Find out the CPC (Cost per Click) rate of advertisement when CPM is 3200 $ and CTR is 30 %

Given,

CPM = 3200 $ CTR = 30 %

Solution

Substitute the given values in the formula, = CPM / (1000 x CTR) = 3200 / (1000 x 30 /100 ) = 3200 / 300 CPC = 10.666 $

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