How to Calculate CPM
Divide the campaign cost by total impressions, then multiply by 1,000. For example, if a campaign costs $500 and delivers 100,000 impressions, CPM = 500 / 100,000 x 1,000 = $5.
CPM Formula Examples
Calculate CPM
$500 / 100,000 x 1,000 = $5 CPM
Calculate Cost
$10 CPM x 50,000 / 1,000 = $500
Calculate Impressions
$500 / $10 CPM x 1,000 = 50,000
Calculate Impressions from CPM
To reverse the formula, use impressions = cost / CPM x 1,000. This is useful when you know your budget and a media plan CPM but need to estimate how many impressions you can buy.
Calculate Campaign Cost from CPM
To estimate spend, use cost = CPM x impressions / 1,000. This helps plan awareness budgets for display ads, YouTube ads, TikTok campaigns, influencer packages, publisher media buys, and PR reports.
Compare CPM Across Campaigns
Lower CPM usually means cheaper awareness, but it does not prove better performance. Compare CTR, CPC, CPA, conversion rate, audience fit, placement quality, and creative quality before choosing the winner.
Is $20 CPM High?
A $20 CPM is not automatically good or bad. It may be high for broad display inventory, but normal for premium video, niche B2B audiences, influencer campaigns, or highly targeted placements. Always compare CPM against campaign objective and audience quality.
CPM vs CPC vs CPA
CPM
Cost per 1,000 impressions. Best for awareness and reach efficiency.
CPC
Cost per click. Better for comparing traffic efficiency.
CPA
Cost per action. Best for conversion and revenue goals.