Enter any two values
Fill in any two fields. The third calculates automatically — highlighted in blue.
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$
What you pay per 1,000 ad impressions served.
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%
The percentage of impressions that result in a click. AU display average is 0.05–0.10%.
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$
What you effectively pay each time someone clicks your ad.
Formula will appear here once calculated
What these metrics actually mean
CPM vs CPC — plain English
These are two different ways of paying for the same thing — exposure to an audience. Understanding the relationship between them is fundamental to evaluating media value.
CPM
$10
You pay $10 for every 1,000 people who see your ad — regardless of whether they click.
CTR
0.10%
1 in every 1,000 people who see your ad clicks it. This is a typical AU display rate.
CPC
$10.00
At $10 CPM and 0.10% CTR, each click costs you $10. Lower CTR = higher effective CPC.
The formula: CPC = CPM ÷ (CTR × 10)
$10 CPM ÷ (0.10% × 10) = $10.00 CPC
Why × 10? Because CTR is a percentage — 0.10% means 0.001 as a decimal — and CPM is per 1,000 impressions. The × 10 collapses both conversions into one step.
$10 CPM ÷ (0.10% × 10) = $10.00 CPC
Why × 10? Because CTR is a percentage — 0.10% means 0.001 as a decimal — and CPM is per 1,000 impressions. The × 10 collapses both conversions into one step.
Live chart
How CPC changes with CTR
At a fixed CPM, small changes in CTR have a large impact on effective CPC. This chart updates as you type.
AU market data · 2025
Australian CTR and CPC benchmarks
Typical click-through rates and resulting effective CPCs across major digital channels in the Australian market.
| Channel / format | Avg CTR | Typical CPM | Eff. CPC |
|---|---|---|---|
| Display (open market) | 0.05–0.10% | $6–$10 | $6–$20 |
| Display (premium) | 0.08–0.15% | $16–$28 | $11–$35 |
| Social (Meta) | 0.50–1.50% | $8–$18 | $0.53–$3.60 |
| Social (LinkedIn) | 0.30–0.60% | $25–$60 | $4–$20 |
| Programmatic video | 0.10–0.30% | $18–$35 | $6–$35 |
| Native advertising | 0.20–0.80% | $8–$16 | $1–$8 |
| Rich media / HPAS | 0.15–0.40% | $20–$45 | $5–$30 |
Buyer's note: CTR varies enormously by creative, audience, placement and objective. These are broad directional ranges only. A well-targeted retargeting campaign can achieve 5–10× higher CTR than a broad awareness campaign at the same CPM — dramatically changing the effective CPC.
Worked example
Is a $12 CPM display buy worth it for a click objective?
A retail brand comparing a $12 CPM display buy against a $0.80 CPC social buy. Which is better value?
1
Calculate effective CPC for display
Display buy at $12 CPM. Expected CTR for this placement: 0.08%
$12 ÷ (0.08 × 10) = $15.00 effective CPC
2
Compare to social CPC buy
Social campaign at $0.80 CPC. To compare apples to apples, work back to the implied CPM at a typical social CTR of 0.80%:
$0.80 × (0.80 × 10) = $6.40 implied CPM
3
Read the result
For a click objective, social at $0.80 CPC significantly outperforms display at $15.00 CPC. However, display at $12 CPM delivers far more impressions per dollar — better for awareness. The right channel depends entirely on your objective, not just the CPM.
Practitioner tips
Using CPM and CPC intelligently
Match your buying model to your objective
Buy on CPM when your goal is awareness or reach. Buy on CPC when your goal is traffic or conversion. Mixing models — paying CPM for a click objective — almost always results in overpaying for outcomes.
A high CTR isn't always a good sign
Accidental clicks on mobile, click fraud and low-quality placements can inflate CTR without delivering real value. Always validate CTR against post-click behaviour — time on site, bounce rate, conversions. A 0.05% CTR that converts is worth more than a 0.50% CTR that bounces.
Use this converter to audit post-campaign
After a campaign ends, enter your actual CPM and CTR to verify the effective CPC matches what your ad server reported. Discrepancies can reveal fee stacking, trafficking errors or measurement inconsistencies worth investigating.
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