CPC calculator
Enter your ad spend and clicks to get your cost per click. Add order value, conversion rate and margin to see the most a click is worth to you.
Formula
CPC = ad spend ÷ clicks
Break-even CPC = average order value × conversion rate × gross margin. It's the gross profit one click earns on average, so paying more than that loses money.
New to the term? Read what CPC means in the glossary.
How to calculate CPC: a worked example
A store spends $600 on ads for 480 clicks. Its average order is $60, 2.5% of clicks buy, and its gross margin is 50%.
- CPC = $600 ÷ 480 = $1.25
- Break-even CPC = $60 × 2.5% × 50% = $0.75
- Each click loses $1.25 − $0.75 = $0.50
The store pays $1.25 for clicks worth $0.75. It needs a cheaper click, a higher conversion rate or a bigger order.
What is a good CPC?
A good CPC is below your break-even CPC. Because break-even CPC multiplies order value, conversion rate and margin, the same $1 click can lose money for one store and make money for another.
Conversion rate is usually the fastest lever: at a $60 order and 50% margin, moving from 2% to 3% raises what a click is worth from $0.60 to $0.90.
| Conversion rate | $60 average order | $100 average order |
|---|---|---|
| 1% | $0.30 | $0.50 |
| 2% | $0.60 | $1.00 |
| 3% | $0.90 | $1.50 |
| 4% | $1.20 | $2.00 |
Questions about CPC
- 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). A better ad lowers CPC even when CPM stays the same.
- Why is my CPC high?
- CPC climbs when few people click your ad or many advertisers bid on the same audience or keyword. Fresh creative, a clearer offer and broader targeting usually bring it down faster than raising bids.
- Should I lower CPC or raise conversion rate?
- Raise conversion rate when you can. A cheaper click helps only that click, while a page that converts better raises the value of every click you buy, on every channel at once.
Do it with Replo
Track CPC against what clicks earn
Replo compares each campaign's CPC with your break-even CPC and flags the campaigns losing money.
Prompt: “compare my CPC with break-even CPC by campaign”