Definition
CPC measures how much you pay for each click on your ads.
Formula
CPC = ad spend / clicks
Example
If you spent $1,000 and got 800 clicks, CPC = $1,000 / 800 = $1.25.
How to use it
- Use CPC with CTR and CVR to locate bottlenecks (creative vs landing page).
- Compare CPC within similar audiences and placements.
Common mistakes
- Comparing CPC across placements with very different intent (e.g., prospecting vs retargeting).
- Optimizing CPC without checking CPA and contribution margin (profit).
Why this matters
This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.
Practical checklist
- Write a 1-line definition for "CPC (Cost Per Click)" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., Max CPC Calculator) to sanity-check assumptions.
- Read the related guide (e.g., CPC (Cost Per Click): definition, formula, and how to calculate) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Max CPC Calculator: Compute break-even and target CPC (and optional CPM) from CVR, AOV, and contribution margin assumptions.
- Paid Ads Funnel Calculator: Model CPM -> CTR -> CVR to estimate CPC, CPA, ROAS, and profit per 1,000 impressions (with margin and variable costs).
Guides
- CPC (Cost Per Click): definition, formula, and how to calculate: CPC explained: what cost per click means, how to calculate it, and how CPC connects to CTR, CVR, and CPA.
- Max CPC and break-even CPC: how to set bidding targets from margin: A practical guide to max CPC: translate AOV, CVR, and contribution margin into break-even CPC and a target CPC with buffer.
- Paid ads funnel: CPM, CTR, CVR -> CPC, CPA, ROAS (with profit): A practical guide to the paid ads funnel: how CPM, CTR, and CVR drive CPC, CPA, ROAS, and profit - with formulas and common pitfalls.
- CTR (Click-Through Rate): definition, formula, and how to improve: CTR explained: what click-through rate is, how to calculate it, and how to improve CTR without sacrificing conversion quality.
- CVR (Conversion Rate): definition, formula, and how to calculate: CVR explained: what conversion rate means, how to calculate it correctly, and how to improve it without sacrificing scale.