Finance

CPM Calculator

Calculate your cost per mille, total ad spend, or total impressions. Switch between all three modes below.

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CPM = (Cost ÷ Impressions) × 1,000

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CPM Formula Explained

CPM (Cost Per Mille) is the standard pricing metric for display advertising. "Mille" is Latin for one thousand, so CPM literally means the cost per 1,000 ad impressions. The three related formulas are:

Calculate CPM

CPM = (Cost ÷ Impressions) × 1,000

e.g. ($500 ÷ 250,000) × 1,000 = $2.00

Calculate Cost

Cost = (CPM × Impressions) ÷ 1,000

e.g. ($5 × 1,000,000) ÷ 1,000 = $5,000

Calculate Impressions

Impressions = (Cost ÷ CPM) × 1,000

e.g. ($1,000 ÷ $4) × 1,000 = 250,000

What is CPM in advertising?

CPM is the standard unit of measurement for ad pricing in programmatic and display advertising. When a publisher sells inventory at a $5 CPM, they charge $5 for every 1,000 times the ad is shown — regardless of how many people click on it.

CPM campaigns are best suited for brand awareness and reach objectives, where the goal is visibility rather than direct action. Major platforms including Google Display Network, Meta Ads, and The Trade Desk all use CPM-based pricing.

CPM vs CPC: Which should you use?

MetricCPMCPC
Charged per1,000 impressionsEach click
Best forBrand awareness, reachPerformance, conversions
RiskPays even without clicksNo charge without clicks
PredictabilityFixed cost per impressionVariable, depends on CTR

Frequently asked questions

What is CPM?
CPM stands for Cost Per Mille (Latin for one thousand). It is the price an advertiser pays for 1,000 ad impressions. CPM is the most common pricing model in display advertising and programmatic media buying.
What is the CPM formula?
CPM = (Total Ad Spend ÷ Total Impressions) × 1,000. For example, if you spend $500 to generate 250,000 impressions, your CPM is ($500 ÷ 250,000) × 1,000 = $2.00.
How do I calculate total cost from CPM?
Total Cost = (CPM × Impressions) ÷ 1,000. If your CPM is $5.00 and you want 1,000,000 impressions, your budget would be ($5.00 × 1,000,000) ÷ 1,000 = $5,000.
How do I calculate impressions from CPM?
Impressions = (Total Cost ÷ CPM) × 1,000. A $1,000 budget at a $4.00 CPM would deliver ($1,000 ÷ $4.00) × 1,000 = 250,000 impressions.
What is a good CPM rate?
A 'good' CPM depends heavily on the industry, placement, and audience. Display ads typically range from $0.50–$5, while premium placements, video, and niche B2B audiences can exceed $50. Compare CPM to your own industry benchmarks rather than a universal standard.
What is the difference between CPM and CPC?
CPM (Cost Per Mille) charges per 1,000 impressions regardless of clicks, making it ideal for brand awareness. CPC (Cost Per Click) charges only when a user clicks the ad, making it better for performance and direct-response campaigns.
What is the difference between CPM and RPM?
CPM is an advertiser metric — how much they pay per 1,000 impressions. RPM (Revenue Per Mille) is a publisher metric — how much revenue a publisher earns per 1,000 page views or impressions. RPM is typically lower than CPM because ad networks take a revenue share.