How we calculate CPM
CPM is the cost to deliver a thousand impressions. It's the standard metric for comparing media prices across channels.
Use the CPM CalculatorFormula
CPM = (investment ÷ impressions) × 1,000
Variables
- investment
- Total budget applied to the campaign.
- impressions
- Number of times the ad was displayed.
Step-by-step calculation
- We divide the investment by the number of impressions.
- We multiply by one thousand to get the cost per thousand.
- We project the impressions that double the budget would bring at the same CPM.
Worked example
Inputs
- Investment: $1,200
- Impressions: 400,000
Calculation
1,200 ÷ 400,000 = 0.003
× 1,000
CPM of $3.00.
Common mistakes
- Comparing CPM across very different audiences without considering audience quality.
- Scaling budget assuming a constant CPM — it rises as frequency grows.
Frequently asked questions
Is a low CPM always better?
No. A low CPM targeting the wrong audience ends up costing more, measured by CPA.
All values are in US dollars (US$). Results are estimates and do not replace professional advice.