CPM Calculator: How to Calculate Cost Per Thousand Impressions

What is CPM?

CPM stands for Cost Per Mille. “Mille” is Latin for thousand. It measures the cost an advertiser pays for 1,000 ad impressions. One impression equals one time an ad is displayed on a web page, regardless of whether anyone clicks on it.

**From the advertiser’s perspective,** CPM answers the question: “How much does it cost me to show my ad to 1,000 people?” A $5 CPM means you pay $5 for every 1,000 times your ad appears. It’s the standard pricing model for brand awareness campaigns where the goal is visibility, not clicks.

**From the publisher’s perspective,** CPM (often called RPM or Revenue Per Mille) answers: “How much do I earn for every 1,000 page views?” If your blog’s RPM is $15, you earn $15 for every 1,000 page views. This is the number that determines whether display advertising is viable for your blog’s traffic level.

The advertising industry uses CPM because it standardizes costs across different media, from websites to podcasts to billboards. You can compare a $10 CPM on Facebook against a $25 CPM on LinkedIn and understand the relative cost of reaching each audience.

How to Calculate CPM

The CPM formula is straightforward.

**CPM = (Total Ad Spend / Total Impressions) x 1,000**

If you spent $500 on a campaign that delivered 200,000 impressions:

CPM = ($500 / 200,000) x 1,000 = **$2.50**

You paid $2.50 for every 1,000 impressions.

**To calculate total cost from CPM:**

Total Cost = (CPM x Impressions) / 1,000

If a platform charges $8 CPM and you want 500,000 impressions:

Total Cost = ($8 x 500,000) / 1,000 = **$4,000**

**To calculate impressions from budget:**

Impressions = (Budget / CPM) x 1,000

With a $2,000 budget at $6 CPM:

Impressions = ($2,000 / $6) x 1,000 = **333,333 impressions**

These three variations of the formula cover every CPM calculation you’ll need. The math is simple. The strategic decisions around CPM are where things get interesting.

CPM vs CPC vs CPA

CPM is one of three common advertising pricing models. Each serves a different campaign goal.

**CPM (Cost Per Thousand Impressions)** charges you for visibility. You pay every time your ad is shown, regardless of clicks or actions. Best for brand awareness campaigns where you want maximum exposure. A billboard on a highway is essentially a CPM buy.

**CPC (Cost Per Click)** charges you only when someone clicks your ad. Best for driving traffic to your website, landing pages, or product pages. Google Search Ads primarily use CPC pricing. If nobody clicks, you don’t pay.

**CPA (Cost Per Acquisition/Action)** charges you only when someone completes a specific action: a purchase, signup, or form submission. Best for direct response campaigns where you need measurable ROI. Affiliate marketing is essentially CPA pricing.

Model	You Pay For	Best For	Risk Level
CPM	Impressions (views)	Brand awareness	High (no guaranteed clicks)
CPC	Clicks	Traffic generation	Medium (pay for engagement)
CPA	Conversions	Direct sales/signups	Low (pay for results)

**Effective CPM (eCPM)** lets you compare different pricing models on equal footing. If you run a CPC campaign that costs $200 and delivers 100,000 impressions, your eCPM is $2.00. This helps you compare whether a CPM deal or a CPC deal gives you more value for the same audience.

Average CPM Rates by Platform

CPM varies dramatically depending on the platform, audience, and industry. Here are typical ranges in 2026.

**Google Display Network:** $1-$5 CPM for most industries. Finance, insurance, and legal niches can see $10-$20+ CPM. Google’s display network is the most affordable option for broad reach.

**Facebook/Instagram:** $5-$15 CPM on average. Highly targeted audiences (like B2B decision-makers) can push CPMs to $30+. Facebook’s targeting capabilities justify the higher cost if you’re reaching the right people.

**YouTube:** $10-$30 CPM for in-stream video ads. Pre-roll ads on popular channels in competitive niches can exceed $50 CPM. Video advertising commands premium pricing because of higher engagement rates.

**LinkedIn:** $25-$80 CPM. LinkedIn is the most expensive major platform for CPM, but its audience of business professionals justifies the premium for B2B advertisers. If you’re selling enterprise software, a $60 CPM on LinkedIn might outperform a $5 CPM on the Google Display Network.

**Programmatic Display:** $1-$10 CPM depending on targeting. Open exchange programmatic buying is the cheapest display advertising available. Private marketplace deals cost more but offer premium inventory.

**Podcast Advertising:** $15-$50 CPM. Host-read ads command $25-$50 CPM. Pre-recorded ads are cheaper at $15-$25 CPM. Podcast audiences are highly engaged, which makes these CPMs competitive despite appearing high.

**Niche matters enormously.** A finance blog might earn $20-$40 RPM from display ads. A general entertainment blog might earn $3-$8 RPM. The same 100,000 page views can generate anywhere from $300 to $4,000 depending on your audience’s commercial value.

How Bloggers Can Use CPM Knowledge

Understanding CPM transforms how you think about blog monetization. Here’s how to apply it practically.

**Understanding your ad network earnings.** Google AdSense reports RPM (Revenue Per Mille), which is essentially CPM from the publisher’s side. If your AdSense RPM is $5, you earn $5 per 1,000 page views. [Mediavine](https://gauravtiwari.org/best-ad-networks-for-bloggers/) typically delivers $15-$30 RPM, and AdThrive $20-$40 RPM, for the same traffic. That difference is why upgrading your ad network can double or triple your revenue without any additional traffic.

**Calculating your ad revenue potential.** If your blog gets 50,000 page views per month and your RPM is $20, your monthly ad revenue is: (50,000 / 1,000) x $20 = $1,000. This calculation helps you set realistic income expectations and decide whether to focus on traffic growth or RPM optimization.

**Negotiating direct ad deals.** When a company approaches you to place an ad on your blog, CPM gives you a fair pricing framework. If your blog gets 100,000 page views per month and similar sites charge $15-$25 CPM, you can confidently quote $1,500-$2,500 per month for a display ad placement. I’ve used this exact approach to negotiate deals that paid 3-4x more than what ad networks offered.

**RPM vs CPM from a publisher’s view.** RPM measures your revenue per 1,000 page views. CPM measures the advertiser’s cost per 1,000 impressions. They’re related but not identical. A single page view might serve 3-5 ad impressions (multiple ad units per page). Your RPM is the sum of all ad unit CPMs on a page. Understanding this distinction helps you optimize ad placement for maximum revenue per page view.

**Optimizing ad placement for higher CPMs.** Ads above the fold (visible without scrolling) command higher CPMs than ads at the bottom of a page. Ads within content outperform sidebar ads. Larger ad units (300×600, 728×90) typically earn more than small units. Testing different placements and sizes is the fastest way to increase your [blog income](https://gauravtiwari.org/how-to-start-a-blog/) without growing traffic.

Common CPM Calculation Scenarios

Here are practical examples you’ll encounter regularly.

**Scenario 1: Evaluating an ad network.** Your blog gets 200,000 page views per month. AdSense pays you $800. Your RPM is ($800 / 200) = $4.00. That’s low. Switching to Mediavine at $20 RPM would earn you $4,000. The numbers make the decision obvious.

**Scenario 2: Pricing a sponsored banner.** An advertiser wants a banner on your site for one month. You average 150,000 page views monthly. Industry standard CPM for your niche is $20. Fair price: (150,000 / 1,000) x $20 = $3,000. Quote $3,000-$3,500 to leave negotiation room.

**Scenario 3: Comparing ad campaigns.** You ran two campaigns. Campaign A cost $1,000 and got 500,000 impressions (CPM = $2). Campaign B cost $800 and got 200,000 impressions (CPM = $4). Campaign A was more cost-efficient per impression, but Campaign B might have reached a more valuable audience. CPM is the starting point for comparison, not the final answer.

Frequently Asked Questions

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What is a good CPM rate?

A good CPM depends on your platform and goals. For Google Display Network, $2 to $5 is average. For Facebook, $5 to $15 is typical. For publishers, an RPM of $15 to $30 from premium ad networks like Mediavine is considered good. Higher CPMs are not always better for advertisers because they need to factor in click-through rates and conversions.

What is the difference between CPM and RPM?

CPM is the cost an advertiser pays per 1,000 ad impressions. RPM is the revenue a publisher earns per 1,000 page views. A single page view can contain multiple ad impressions, so RPM is typically the sum of all ad unit CPMs on a page. Publishers should focus on RPM as their primary revenue metric.

How do I increase my blog’s CPM?

Switch to a premium ad network like Mediavine or AdThrive. Optimize ad placement by putting ads above the fold and within content. Write about high-value niches like finance, technology, or health. Increase page speed to reduce bounce rates. These changes can double or triple your effective CPM without increasing traffic.

Is CPM or CPC better for advertisers?

CPM is better for brand awareness campaigns where you want maximum visibility. CPC is better for performance campaigns where you want website traffic or conversions. If your ad has a high click-through rate, CPM can be cheaper than CPC. If your click-through rate is low, CPC is safer because you only pay for actual engagement.

Why is LinkedIn CPM so much higher than Facebook?

LinkedIn’s audience consists of business professionals, executives, and decision-makers with higher purchasing power. Advertisers pay premium CPMs because LinkedIn users are more likely to make B2B purchasing decisions. A $60 CPM on LinkedIn can deliver better ROI than a $5 CPM on Facebook if you are selling enterprise products or services.

How many page views do I need to make money with display ads?

With Google AdSense at roughly $5 RPM, you need 200,000 page views per month to earn $1,000. With Mediavine at $20 RPM, you need only 50,000 page views to earn the same amount. Most premium ad networks require 50,000 to 100,000 monthly sessions to qualify, which is a reasonable target for bloggers focused on SEO.

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Know Your Numbers

CPM isn’t complicated, but it’s powerful. Understanding this single metric helps you evaluate ad networks, negotiate sponsorship deals, forecast revenue, and compare advertising costs across platforms.

For bloggers, the actionable takeaway is simple: calculate your current RPM, compare it to what premium ad networks offer, and make the switch when you qualify. The difference between a $5 RPM and a $25 RPM on 100,000 monthly page views is $2,000 per month. That’s the kind of math that turns a side blog into a real business.