Enter the total cost and the total number of clicks generated from the advertising campaign into the calculator to determine the cost per click.

Cost Per Click Formula

The following equation is used to calculate the Cost Per Click.

CPC = T$ / TC

  • Where CPC is the cost per click ($/click)
  • T$ is the total cost spent on advertising ($)
  • TC is the total number of clicks generated

To calculate the cost per click, simply divide the total cost of the campaign by the total number of clicks.

What is Cost Per Click?

Definition:

Cost Per Click is a keyword advertising metric used to determine how much you pay when someone clicks on your ad.

A Cost Per Click (CPC) is a cost-per-click (CPC) model that advertisers use to pay only for the clicks on the ad that they want. The CPC is the amount an advertiser pays for each ad click.

In contrast, the Cost Per Impression (CPM) is the cost of running an ad irrespective of whether any user has clicked on it or not. A CPA model, where the advertiser pays for every purchase made by a user who saw the ad, is also standard in digital marketing.

The higher the CPC, the more competitive your campaign will be and the faster your ads will show up. The lower CPC, the less competitive and slower your ads will show up on Google.

Paid clicks are when people click through to your website from a paid advertisement. If someone sees your ad on Google Search and clicks on it, we count this as a conversion.  If they click on the ad and then return to the search results after clicking through, we don’t count this as a conversion.

It’s important not to make assumptions about when someone has clicked through from an ad; always measure conversions by asking customers if they saw an ad before they visited your site.