Plan your ad budget with our free CPM calculator
Calculate CPM, advertising cost or impressions.
Add optional assumptions to estimate clicks and conversions.
CPM Calculator & Traffic Planner
Calculate CPM, advertising cost or impressions. Then explore what your budget could deliver.
Choose a calculation and enter the two required values.
Scenario estimates
Fractional conversions are expected values in a mathematical scenario; actual orders and leads occur in whole numbers.
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How to calculate CPM
CPM = advertising cost ÷ ad impressions × 1,000.
For example, spending 1,000 on 100,000 impressions produces a CPM of 10. This means each 1,000 ad displays costs 10 in your chosen currency.
To calculate the other values:
- Advertising cost = CPM × impressions ÷ 1,000.
- Impressions = advertising budget ÷ CPM × 1,000.
Turn impression costs into a traffic plan
CPM tells you the price of ad displays. It does not tell you how many people will click or buy. To explore those outcomes, add your own assumptions:
- Estimated clicks: impressions × CTR ÷ 100.
- Estimated conversions: clicks × click-to-conversion rate ÷ 100.
- Estimated CPC: advertising cost ÷ estimated clicks.
- Estimated CPA: advertising cost ÷ estimated conversions.
At a budget of 1,000 and a CPM of 10, you could buy 100,000 impressions. Assuming a 1% CTR and a 2% click-to-purchase conversion rate, the scenario produces 1,000 clicks, 20 orders and an advertising cost of 50 per order.
Those assumptions are examples, not benchmarks. Use comparable historical results when available and test several scenarios before deciding on a budget.
Does your estimated acquisition cost leave enough margin?
Compare the cost per order with what remains after product costs, fulfillment, fees and other relevant expenses. For leads, account for how many enquiries become paying customers.
Frequently asked questions
What is CPM?
CPM stands for cost per mille, meaning cost per thousand. In advertising, it expresses the cost of 1,000 ad impressions.
Are impressions the same as people reached?
No. The same person can see an ad multiple times. Impressions count displays; reach counts unique people within the platform’s reporting definition.
What is a good CPM?
There is no universal good CPM. Platform, country, audience, placement, season and campaign objective affect pricing. For performance campaigns, compare CPM alongside click-through rate, conversion rate and acquisition cost.
Is a lower CPM always better?
No. Cheaper impressions can produce fewer relevant clicks or purchases. A campaign with a higher CPM can still have a lower acquisition cost if enough of its impressions lead to conversions.
Does this calculator predict sales?
No. It calculates scenarios using the assumptions you enter. Actual delivery, clicks and conversions can differ, and results may change as your spending increases.
How do I lower CPM?
Investigate audience restrictions, placement choices, competition and creative performance. Test changes against your campaign objective. A lower impression price is useful only when the resulting traffic and outcomes still meet your needs.
Can I use currencies other than dollars?
Yes. Use the same currency for every monetary input. The calculator does not convert currencies.
Can publishers use this calculator?
Yes, the same arithmetic can calculate revenue per 1,000 ad impressions by treating the monetary amount as revenue. That is a publisher revenue calculation, whereas this planner’s click, conversion and acquisition-cost sections are designed for advertisers.
Want worked examples?
Learn how to calculate CPM, advertising costs and impressions.
