How do you calculate CPC?

CPC = Total Ad Spend / Total Clicks. If you spent $1,000 and got 500 clicks, your CPC is $2.00. This is the average cost you paid for each click on your ads.

Good CPC varies by industry. B2C averages $1-2, B2B $2-5, and competitive industries like legal/insurance can exceed $50. The key is whether your CPC allows profitable customer acquisition based on your conversion rate and margins.

What is the difference between CPC and PPC?

PPC (Pay Per Click) is the advertising model where you pay for clicks. CPC (Cost Per Click) is the metric measuring what you actually paid per click. All CPC advertising is PPC, but PPC refers to the model, CPC to the cost.

How can I lower my CPC?

Key strategies: (1) Improve Quality Score through relevant ads and landing pages, (2) Use negative keywords to avoid irrelevant clicks, (3) Target long-tail keywords with less competition, (4) Improve CTR (higher CTR often lowers CPC), (5) Test different bid strategies.

What is the relationship between CPC and CTR?

Higher CTR often leads to lower CPC. Platforms reward relevant ads (high CTR) with lower costs. A 5% CTR might get you $1 CPC while 1% CTR could cost $3 CPC for the same placement. Improving ad relevance benefits both metrics.

CPC Calculator

Calculate your Cost Per Click instantly. See CTR, CPM, conversion rate, and get AI-powered tips to reduce ad costs.

Enter Your Values

Total Ad Spend*

Total amount spent on the campaign

Total Clicks*

clicks

Number of clicks on your ads

Total Impressions

impressions

For CTR and CPM calculation

Conversions

conversions

Sales, leads, or other conversion actions

Revenue Generated

For ROAS and revenue per click

Target CPC

Your goal CPC for comparison

Formula

CPC = Total Ad Spend / Total Clicks

Cost Per Click measures what you pay for each click. Lower CPC with maintained quality means more efficient advertising.

Cost Per Click (CPC)$2

$2.00 CPC beats your $2.00 target by 0%!

Total Spend$1,000

Total Clicks500

CTR2.00%

CPM$40

Impressions25,000

CPA$40

Conversion Rate5.00%

ROAS5.00x

Revenue/Click$10

vs Target-$0.00

Clicks at Target CPC500

CPC Benchmarks by Industry

Very Low<$0.50 — display, social, low-competition

$0 – $0

Low$0.50-1.50 — typical B2C, broad targeting

$1 – $1

Average$1.50-4 — most industries average

$2 – $4

High$4-10 — competitive B2B, finance, legal

$4 – $10

Very High$10+ — insurance, legal, high-value keywords

> $10

Source: WordStream & Google Ads 2024

How to Calculate CPC

Enter your total ad spend for the campaign
Enter the total number of clicks received
Optionally add impressions for CTR and CPM
Add conversions for cost per acquisition
Add revenue for ROAS calculation
Chat with our AI Marketing Analyst for cost optimization

CPC Benchmarks by Industry

$0.50-2.00

E-commerce

$2.00-5.00

B2B SaaS

$3.00-12.00

Finance

$5.00-50.00+

Legal

$2.00-6.00

Healthcare

$1.00-3.00

Travel

Source: WordStream & Google Ads 2024

CPC Calculator

CPC Benchmarks by Industry

How to Calculate CPC

CPC Benchmarks by Industry

Frequently Asked Questions

How do you calculate CPC?

What is a good CPC?

What is the difference between CPC and PPC?

How can I lower my CPC?

What is the relationship between CPC and CTR?