What Is CPM?
CPM means cost per mille, or cost per thousand impressions. It is the price you pay for your ad to be shown 1,000 times. CPM is the standard way to price display, video, social and connected TV ads, and Google describes CPM bidding as paying per one thousand views on the Display Network.
The formula is CPM = total cost ÷ impressions × 1,000. Spend ₹12,000 for 4,00,000 impressions and your CPM is ₹30.
How to Use the CPM Calculator
- Pick what you want to find: CPM, total cost or impressions.
- Enter the two numbers you know. The green box fills in the answer.
- Add your CTR to see the effective cost per click hidden inside your CPM.
- Add a CPC price to compare. The tool tells you whether CPM or CPC buying is cheaper at your CTR.
CPM Formulas
| To find | Formula | Example |
|---|---|---|
| CPM | Cost ÷ impressions × 1,000 | ₹12,000 ÷ 4,00,000 × 1,000 = ₹30 |
| Total cost | Impressions ÷ 1,000 × CPM | 4,00,000 ÷ 1,000 × ₹30 = ₹12,000 |
| Impressions | Cost ÷ CPM × 1,000 | ₹12,000 ÷ ₹30 × 1,000 = 4,00,000 |
| Effective CPC | CPM ÷ (1,000 × CTR) | ₹30 ÷ (1,000 × 0.8%) = ₹3.75 |
| Effective CPM | CPC × CTR × 1,000 | ₹5 × 0.8% × 1,000 = ₹40 |
When CPM Makes Sense
CPM buying suits awareness goals, where the aim is to be seen by as many of the right people as possible. If your goal is clicks or sales, the CPM vs CPC section shows the real price of a click. A low CPM with a tiny CTR can cost more per click than a simple CPC bid.
- Compare like with like. CPMs vary a lot by country, audience, placement and season.
- Watch frequency. Cheap impressions shown to the same people again and again lose impact.
- Check viewability. An impression nobody could see is not worth paying for.
- Test creatives. A better ad raises CTR, which lowers your effective CPC at the same CPM.
Learn more about Google Display Network targeting, Demand Gen campaigns and Meta Advantage Plus campaigns. To measure how often people click, use the CTR calculator.
Frequently Asked Questions
1How do you calculate CPM?
Divide your total cost by the number of impressions, then multiply by 1,000. For example, ₹12,000 for 4,00,000 impressions is a CPM of ₹30.
2What does the M in CPM stand for?
M is the Roman numeral for 1,000, from the Latin word mille. CPM is the cost of 1,000 ad impressions.
3How do I convert CPM to CPC?
Divide CPM by 1,000 times your CTR. A ₹30 CPM with a 0.8% CTR gives ₹30 ÷ (1,000 × 0.008) = ₹3.75 per click.
4Is my data private?
Yes. The CPM calculator runs entirely in your browser. Nothing you enter is uploaded.