Business Advertising
CPC calculator
Ad spend
Impressions
Clicks
Conversions
Revenue
CPC 0.5
1000 ÷ 2000 clicks
The rest of the funnel
CPM 10
CPA 10
Click-through rate 2 %
Conversion rate 5 %
ROAS 5×
Profit 4,000
Revenue per click 2.5
Compare against revenue per click
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320 × 100
CPC is spend divided by clicks. A 1,000 budget buying 2,000 clicks is 0.50 per click. Whether that is cheap depends entirely on the revenue per click, which the same set of numbers gives you.
How to calculate CPC
1 Enter spend and the clicks it bought.
2 Add conversions and revenue to see what a click is actually worth.
3 Compare CPC against revenue per click, not against a benchmark.
4 Use the break-even CPC figure as your bidding ceiling.
Cost per click is only half a number. The other half is revenue per click, and the campaign works whenever the second exceeds the first. That framing is more useful than any industry benchmark, because it is specific to your margins and conversion rate: a 4 CPC is excellent for a business converting at 5% on a 300 order and ruinous for one converting at 1% on a 30 order. Bidding to a target CPC without knowing revenue per click is guessing.
Questions
Divide total ad spend by the number of clicks it produced.
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300 × 250
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