We have provided a useful CPC Calculator below to work out your CPC as well as derive the number of clicks and cost you would need to get a specific CPC. If you want to know how to calculate your CPC, feel free to experiment with our Cost Per Click calculator below using different scenarios in order to help you understand this pricing model better.
What is a CPC?
CPC stands for Cost Per Click and is the amount each click costs. It is usually a good payment model for advertisers, but not that great for website owners.
If you are selling ads on a CPC basis, this means a payout is triggered every time an ad is clicked on. If you are buying ads by the click, it is commonly referred to as PPC (which stands for Pay Per Click). There is actually no difference between CPC and PPC however.
CPC can also be used as a measure of how much clicks have costed when you are using different ad pricing models. Paying for clicks is often cost effective when you are starting out, but when your CTR starts getting better then a CPM rate can be better. To work out when this tipping point occurs, see here.
Ad ONE – Paying on a CPC basis ($1 per click): 10,000 impressions and 40 clicks costs $40 (CPC=$1)
Ad TWO – Paying on CPM basis ($3 per 1,000 impressions): 10,000 impressions and 40 clicks costs $30 (CPC=$0.75)
The Cost Per Click campaign costs more in total however, and actually costs more per click. This is even though you are paying three times as much for CPM as CPC – which is a reasonable ratio.
If the CTR was higher, the CPM campaign would actually be even better value. Therefore when you start out advertising and have a low CTR you should use CPC ads, but move to CPM advertising when your CTR gets higher. Use our Cost Per Click Calculator below to get started.
How to Calculate CPC
The Cost Per Click equation is:
Click to enlarge
CPC = Cost / Clicks
Our CPC Calculator:
Find out more