# CPM Calculator – How to calculate CPM

Determining how much you need to spend to buy a certain number of impressions for a particular advertising campaign or marketing campaign is not always easy for many marketers.

On the other hand, publishers also need a CPM calculator to determine the amount they are going to make based on their traffic capacity or ad campaign.

Hence, in this post, we teach you how to calculate CPM.

This will help make things easier for both advertisers and publishers at least to figure out their campaign cost and possible ROI on their advertising and publishing campaigns.

So let’s get into it…

## What is CPM?

CPM is simply an advertising pricing model used by both advertisers and publishers to determine the cost of their CPM advertising campaign.

CPM stands for cost per thousand impressions (costs per mille/thousand) which represents the cost of one thousand ad impressions.

Use the calculator to calculate your cost per thousand impressions (CPM).

## CPM Calculator

### Find campaign costs

Note: To recalculate, simply modify your figures to get the total CPM Cost

## How is CPM Calculated

Calculating CPM is a very easy division and multiplication mathematics and very easy to calculate and it makes your marketing strategies better.

It is calculated by simply taking the total cost of the advertising campaign and dividing it by the total number of impressions, and then multiplying the number by 1000 (CPM = cost/impressions x 1000).

In most cases, the CPM rate is set by the Ad network or the publisher based on the amount and quality of traffic.

Some publishers may decide to charge \$5 per 1000 impressions while some may charge \$3 per 1000 impressions.

Here is how to calculate CPM

#### Doing the maths using the above figures

Let’s assume a given company is planning to spend \$10,000 for a CPM ad campaign or a paying-per-click campaign and wish to get about 400,000 impressions.

To determine the ad cost they are going to pay for the cost per thousand impressions, you have to take the \$10,000 and divide the cost by 400,000 which is the desired impressions, and then multiply it by 1,000 to get the cost per thousand impressions which is \$25 in our case.

You can use the above CPM Calc. to get all your figures. You have to input only two figures to get the other.

This means you can use the calculator to figure out your cost per campaign or how much you can spend to get the desired amount of impressions.

One of the benefits of using the above CPM calculator is to know the approximate outcome of an ad campaign or advertising campaign, it will also help you have a better understanding of your campaign ROI

It is highly recommended that advertisers to evaluate the potential outcome of their advertising campaigns before engaging and launching them and simply using the CPM model to divide the cost of the given CPM ad campaign to determine how much their CPM ad will cost will pretty much show the cost of their campaign.

We also made it easier for you to calculate your cost-per-click campaign cost here in the Below calculator.

### Find CPC

Note: To recalculate, simply modify your figures to get the total CPM Cost

## Conclusion

CPM is an important term and a pricing model which makes it important for both businesses and publishers.

The same applies to PPC or paying-per-click marketing strategies. You will always benefit from understanding your cost of advertising before launching it.

For businesses, calculating advertising costs and the possible outcome is a necessity. An understanding of your CPM cost will give you an idea of how much to budget per advertising campaign.

As a publisher, having an understanding of how actually the CPM model works will eventually lead to more informed decisions on how and where to monetize your traffic.

Using the above cost-per-thousand impressions (CPM) calculator is in every way beneficial for both advertisers and publishers.

#### Eugene Agoh

Founder at AdsTargets | Online advertising expert | Search engine optimisation expert | Social media marketing expert.Eugene is a Passionate writer on topics relating to online advertising, branding and generally interested in creating digital marketing content. He is curious about the future of digital advertising.Follow Eugene on LinkedIn @ eugeneagoh

### 6 Responses

1. Dercums says:

Thank you for clearing that up, it is most helpful

2. Will Smith says:

This is a very informative blog. I read your blog and found that it is related to an advertising pricing model which is used by advertisers and publishers to determine the cost of their CPM advertising campaign. If you want to learn more about CPM then this is the right article for you.