Free Tool
CPM Calculator
Work out your cost per 1,000 impressions in seconds. Enter your ad spend and your impressions to get your CPM in Rand and compare campaigns fairly.
Run the numbers
Calculate your CPM
Enter the total ad spend and the number of impressions for a campaign. The calculator returns your CPM, the cost of every 1,000 impressions.
What it means
What is CPM
CPM stands for cost per mille, the cost of 1,000 ad impressions, calculated as ad spend divided by impressions, multiplied by 1,000. Mille is Latin for thousand. CPM is the standard way to price and compare awareness advertising across Meta, Google Display, YouTube, TikTok and programmatic.
If you spend R5,000 and the ad is shown 250,000 times, your CPM is R20. It tells you what you pay to reach a thousand sets of eyes, which makes campaigns of different sizes directly comparable.
The formula
How to calculate CPM
The formula is:
CPM = (ad spend / impressions) x 1,000
Worked example: R8,000 spent for 400,000 impressions gives 8,000 / 400,000 = 0.02, then x 1,000 = a R20 CPM. To go the other way, budget = (CPM / 1,000) x target impressions.
Benchmarks
What is a good CPM
A lower CPM means cheaper reach, but it is only half the story. A cheap CPM to the wrong audience wastes money, while a higher CPM to a tightly targeted, high-intent audience can be far more profitable. Judge CPM alongside the results it drives, clicks, leads and sales, not on its own. If you want more reach for your budget, our social media and paid ads teams can help.
Frequently asked questions
CPM Calculator: FAQ
How do I calculate CPM?
Divide your total ad spend by the number of impressions, then multiply by 1,000. For example, R5,000 spent for 250,000 impressions gives a CPM of R20.
What does CPM stand for?
CPM stands for cost per mille, where mille is Latin for thousand. It is the cost of showing your ad 1,000 times, the standard pricing unit for awareness advertising.
Is a lower CPM always better?
Not always. A low CPM to the wrong audience wastes budget. A higher CPM to a precise, high-intent audience can drive more sales. Always judge CPM against the results it produces.
How is CPM different from CPC?
CPM is the cost per 1,000 impressions and suits awareness campaigns. CPC is the cost per click and suits campaigns built to drive traffic or action. Many campaigns track both.