How to Calculate Cost Per Mille (CPM)

CPM Calculator

To calculate CPM, you simply take the total cost of your campaign/ad, and divide it by the total number of impressions for the same, then multiply this answer by 1000.

(cost ÷ Impressions) * 1000 = cpm

What is CPM?

Cost Per Mille (CPM) is also called cost per thousand, and refers to the cost of a marketing campaign per 1000 impressions. CPM can allow you to see how much you need to pay per 1000 views on your ad. An impression is counted every time your ad is served, regardless of whether the user interacts with it. Understanding how to calculate CPM is vital to optimize your budget and maximize your campaigns’ impact.

For example, if a website’s CPM charge is $7, that means you pay $7 for every 1000 views your ad gets, thus your CPM is $7. By calculating this, you can decide whether the amount you’re paying is cost-effective!

How to Calculate CPM

To calculate CPM, you simply take the total cost of your online advertising, and divide it by the total number of impressions, then multiply this answer by 1000.

There is a simple formula to calculate your CPM:

(Cost Impressions) x 1000

As an example, your advertising campaign costs $600 for 100,000 impressions.

  • 600 / 100,000 = 0.006
  • 0.006 x 1000 = $6

 

In Excel and Google Sheets, CPM is calculated as follows:

  • Total cost of your campaign in cell A1
  • Total number of impressions in cell A2
  • In a third cell, enter the formula =(A1/A2)*1000

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