Calculate CPM, total campaign cost, or number of impressions — enter any two values and get the third instantly.
How CPM Works
CPM is the standard pricing model for display advertising. You pay a fixed rate for every 1,000 times your ad is shown, regardless of whether anyone clicks.
Formula:
CPM = (Total Cost ÷ Impressions) × 1,000
Example: A campaign spends $750 and delivers 75,000 impressions.
CPM = (750 ÷ 75,000) × 1,000 = $10.00
You can rearrange the formula to solve for any of the three variables:
| Find | Formula |
|---|
| CPM | Cost ÷ Impressions × 1,000 |
| Total Cost | CPM × Impressions ÷ 1,000 |
| Impressions | Cost ÷ CPM × 1,000 |
What Is a Good CPM?
CPM rates vary significantly by platform, audience, and ad format:
| Channel | Typical CPM Range |
|---|
| Display / banner | $2 – $5 |
| Social media (Facebook, Instagram) | $5 – $15 |
| YouTube / video | $15 – $30 |
| Programmatic premium | $10 – $50+ |
A lower CPM means cheaper reach, but a lower number alone does not indicate a better campaign. Audience quality, targeting precision, and conversion rate matter more than the raw impression cost.
Sources
Frequently Asked Questions
What does CPM stand for?
CPM stands for Cost Per Mille — "mille" is Latin for thousand. It represents the cost of showing an ad to 1,000 people, making it the standard unit for comparing advertising prices across platforms and campaigns.
How do I calculate CPM?
Divide the total campaign cost by the number of impressions, then multiply by 1,000. For example, if a campaign costs $500 and delivers 50,000 impressions, the CPM is (500 ÷ 50,000) × 1,000 = $10.00.
How do I calculate total campaign cost from CPM?
Multiply CPM by the number of impressions, then divide by 1,000. For example, a CPM of $10 for 200,000 impressions costs 10 × 200,000 ÷ 1,000 = $2,000.
How do I calculate impressions from CPM and budget?
Divide the total budget by CPM, then multiply by 1,000. For example, a $500 budget at a $10 CPM delivers 500 ÷ 10 × 1,000 = 50,000 impressions.
What is a good CPM?
A good CPM depends on the platform and industry. Display advertising typically runs $2–$5, social media $5–$15, and video ads $15–$30 or more. A lower CPM means cheaper reach, but audience quality and targeting precision matter more than the raw rate.
What is the difference between CPM, CPC, and CPA?
CPM (Cost Per Mille) charges per 1,000 ad views regardless of clicks. CPC (Cost Per Click) charges only when someone clicks the ad. CPA (Cost Per Action) charges only when a user completes a desired action such as a purchase or sign-up. CPM is best for brand awareness; CPC and CPA are better for direct-response campaigns.