CPM Calculator

Cost Per Mille (1,000 Impressions)

Calculate CPM

CPC Calculator

Cost Per Click

Calculate CPC

CPA Calculator

Cost Per Acquisition/Action

Calculate CPA

Mastering Digital Advertising Metrics

Understanding the "Big Three" metrics—CPM, CPC, and CPA—is the foundation of any profitable ad campaign. Here is how professional media buyers use them:

1. CPM (Cost Per Mille)

Formula: (Total Cost / Impressions) * 1000

CPM measures the cost of 1,000 views. It is the default metric for Brand Awareness campaigns. If your goal is simply to get your message in front of as many people as possible (like a billboard), you optimize for the lowest CPM.

• Good for: Product launches, political campaigns, and broad announcements.
• Pro Tip: A high CPM isn't always bad. LinkedIn has a high CPM (~$35), but the audience quality is CEO-level, making it worth the cost.

2. CPC (Cost Per Click)

Formula: Total Cost / Total Clicks

CPC is the standard for Performance Marketing. You pay only when a user takes action (clicks). This protects your budget from being wasted on people who see your ad but ignore it.

• Good for: Traffic generation, blog promotion, and e-commerce.
• How to lower it: Improve your "Click-Through Rate" (CTR). Platforms like Google and Meta reward high CTRs with lower CPCs.

3. CPA (Cost Per Acquisition)

Formula: Total Cost / Total Conversions

CPA is the "Holy Grail" of ROI. It tells you exactly how much it costs to buy a customer. If your product sells for $100 and your CPA is $30, you are profitable.

• Good for: SaaS, Lead Generation, and Direct Sales.
• The Rule of Thumb: Your CPA should never exceed 30% of your Customer Lifetime Value (LTV).