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Cost per click

What is CPC (cost per click)?

CPC (cost per click) is the average amount paid each time someone clicks an ad: ad spend divided by clicks.

Formula

CPC = ad spend ÷ clicks

Spend $600 for 480 clicks and your CPC is $1.25. If a click earns you $0.75 in gross profit on average, each one loses $0.50.

Work out yours with the CPC calculator.

A real store example

Be Amazing Daily Greens page: over 400 Meta ads linked here.

The page sells a ready-to-drink can of greens made with 10 organic fruits and vegetables. Every visit to it is a paid click, so the page has to say what's in the can, and why to buy it, before the shopper leaves.

Open the pageSee their ads

How to improve CPC on your store

  1. Write ads people want to click

    A higher click-through rate lowers CPC at the same CPM, because the platform rewards ads that hold attention.

  2. Make each click worth more

    Break-even CPC is order value × conversion rate × margin. A page that converts better raises what you can afford to pay.

  3. Cut the clicks that never buy

    Exclude audiences and placements with clicks but no orders, so spend moves to the ones that sell.

Ask Replo: "compare my CPC with break-even CPC by campaign".

Check my CPC

CPC questions

What is a good CPC?
A good CPC is below what a click earns you: average order value × conversion rate × gross margin. At a $60 order, 2% conversion and 50% margin, any click under $0.60 makes money on the first order.
What's the difference between CPC and CPM?
CPC is the price of one click; CPM is the price of 1,000 impressions. They're linked by click-through rate: CPC = CPM ÷ (1,000 × CTR). Better ads lower CPC even when CPM doesn't move.
Why is my CPC so high?
Usually because few people click the ad, or because many advertisers bid on the same audience. New creative and a clearer offer bring it down faster than raising bids.

Related terms

Browse the glossary

CTR

CTR (click-through rate) is the share of people who see an ad or link and click it: clicks divided by impressions.

CPM

CPM (cost per mille) is what an advertiser pays for 1,000 ad impressions, the standard price of reach on social and display ads.

CPA

CPA (cost per acquisition) is the ad spend it takes to win one conversion, such as a purchase or signup: ad spend divided by conversions.

Conversion rate

Conversion rate is the share of visitors who complete a goal, usually a purchase: conversions divided by sessions.

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