Enter the total cost and the total quantity into the calculator to determine the cost per mille.

Cost Per Mille Formula

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

CPM = TC / (TQ/1000)

  • Where CPM is the cost per mille ($/1000)
  • TC is the total cost ($)
  • TQ is the total quantity

To calculate the cost per mille, simply divide the total cost by the quantity, then multiply by 1000.

What is Cost Per Mille?

Definition:

Cost per mille is a term used in many industries, most often in marketing, to describe the cost per 1000 quantity. This quantity can be anything from impressions (when looking at advertising), to units of product (when looking at manufacturing).

How to Calculate Cost Per Mille?

Example Problem:

The following example outlines the steps and information needed to calculate cost per mille.

First, determine the total cost. In this example problem, the total cost is found to be 1,200.

Next, determine the total quantity. For this example, we are looking at advertising and the total quantity is the number of impressions. This is measured to be 100,000 impressions.

Finally, calculate the cost per mille using the formula above:

CPM = TC / (TQ/1000)

CPM = 1000 / (100,000/1000)

CPM = $10/impression