What Is CPM? How to Calculate Cost Per Mille in Advertising
Updated October 2026 · 4 min read
Quick start: Open the free CPM Calculator — enter budget and impressions to get CPM, or reverse-calculate impressions from a CPM rate.
CPM stands for Cost Per Mille — "mille" is Latin for thousand. It is the standard pricing model for display advertising, video ads and social media reach campaigns, representing the cost to serve your ad to 1,000 people.
The CPM Formula
CPM = (Total ad spend ÷ Total impressions) × 1,000
Impressions = (Total spend ÷ CPM) × 1,000
Total spend = (CPM × Impressions) ÷ 1,000
Example: $500 spend → 200,000 impressions → CPM = $2.50
Typical CPM Rates by Channel (2026)
| Channel | Average CPM |
|---|---|
| Google Display Network | $1–$3 |
| Facebook / Instagram | $7–$14 |
| YouTube | $4–$10 |
| $26–$50 | |
| TikTok | $3–$8 |
| Programmatic display | $0.50–$2 |
CPM vs CPC vs CPA
CPM pays per impression — good for brand awareness when your goal is reach. CPC (cost per click) pays only when someone clicks — better for driving traffic. CPA (cost per action) pays only on a conversion — highest efficiency but requires enough data for algorithm optimisation. Most campaigns start with CPM to build audience data, then shift to CPC or CPA for performance.
Calculate CPM, Impressions or Budget
Three-way calculation — enter any two values to get the third instantly.
Open Free CPM Calculator →