Media & Data
Basic

Cost Per Click (CPC)

Average amount paid for each click on an ad.

Formula

CPC=CostClicksCPC = \frac{\text{Cost}}{\text{Clicks}}

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Variables

CostTotal ad spend
ClicksNumber of clicks

Example

$200 for 400 clicks → CPC = $0.50

How it works

Cost per click (CPC) tells you how much, on average, each ad click costs by spreading the total spend across the number of clicks received. The formula works because it is just "total cost per one click" found by dividing the whole advertising cost by how many clicks that cost produced. A lower CPC means you are paying less for each visit to your site or landing page, while a higher CPC means each click is more expensive.

When to use it

Use CPC when comparing the efficiency of online ads on platforms like Google Ads, Meta Ads, or other pay-per-click campaigns. It helps you judge whether your advertising budget is being spent effectively and compare different campaigns, keywords, or audiences.

Worked example, step by step

Total ad cost = $75 Number of clicks = 250 CPC = Cost ÷ Clicks CPC = 75 ÷ 250 CPC = 0.30 Final answer: The cost per click is $0.30 per click.

Common mistakes to avoid

  • Dividing clicks by cost instead of cost by clicks
  • Using impressions or views instead of clicks in the formula
  • Forgetting to keep the units as dollars per click

Did You Know?

Search ads are auctioned, so CPC changes in real time with competition.

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Reviewed & maintained by the FormulaWon editorial teamLast reviewed September 2026