#### Calculate CPM, eCPM, CPC, CTR, CPA, Impressions & ROI

CPM = Cost to an Advertiser x 1000 / Impressions

eCPM = Revenue Earned x 1000 / Total Impressions

CPC = Cost to an advertiser / number of clicks

CTR = (number of clicks / number of impressions) x 100

CPA = (Cost / Acquisitions)

Impressions = (Cost x 1000 / CPM)

ROI = Revenue - Cost / Cost

This tool will provide you all the calculations that are commonly used in Online Advertising Industry. It is very helpful while creating the Digital Advertising Media Plan.

• ##### CPM ( Cost per 1,000 Impressions )
Cost per thousand (CPM) is a marketing term used to calculate the price of 1,000 advertisement impressions on one webpage. If a website publisher charges 3 US Dollar CPM, that means an advertiser will pay \$3.00 for every 1,000 impressions of their advertising ad. The "M" in CPM represents the Roman numeral for 1,000.

CPM Formula : ( Cost to an Advertiser / Impressions ) x 1000

• ##### eCPM ( Effective cost per thousand Impressions )
It is the outcome of a calculation of the ad revenue generated by a banner or campaign, divided by the number of ad impressions of that banner or campaign expressed in units of 1,000.

eCPM Formula = ( Revenue Earned / Total Impressions ) x 1000

• ##### CPC ( Cost Per Click )
Cost per click (CPC) is a marketing term used to calculate the price of 'Click' on advertisement banner or creative on the webpage. If Publisher CPC Price is 10 Cents & 100 Clicks are delivered then publisher will charge \$10 ( 100 x \$0.10 ).

CPC Formula : Cost to an advertiser / Number of clicks

• ##### CTR ( Click-through rate )
This is the term which is commonly used in online advertising. It is used to analyse the branding campaign performance. CTR is ratio of Click on advertising banner or specific link to the total number of Impression/Views on Advertising Banner or Webpage.

CTR Formula = (Number of clicks / Number of impressions) x 100

• ##### CPA ( Cost per Action or Cost per Acquisition )
CPA is an online advertising pricing model where the advertiser pays for a specified action or acquisition. Eg : Lead Form or Registration, Sale of Product, etc.

CPA Formula = (Cost / Acquisitions)

• ##### ROI ( Return On Investment )
It is a performance metrics for online advertising campaign. It is used to measure the efficiency on the total investment. You can calculate the ROi by simple formula below :

ROI Formula = ( Gain from Investment - Cost ) / Cost