CPC (Cost per Click)
MetricCPC is the average amount paid to an ad platform each time a user clicks on an advertisement.
What is CPC, in plain English?
CPC is what the toll booth charges every time someone clicks your link and visits your website from an ad.
How do you calculate CPC?
CPC = Ad Spend ÷ Total Clicks
CPC example
$600 spent on Google Search resulting in 400 visits equals a CPC of $1.50 per click.
Common CPC mistakes
A low CPC is not necessarily a win. Cheap clicks from accidental mobile banner taps or bot-heavy ad networks usually convert poorly. Always measure cost-per-conversion and revenue alongside CPC.
What is a good CPC?
Cost per click is only good or bad relative to what a click turns into. Multiply your target CPA by your conversion rate to get the most you can afford per click: with a $40 target CPA and a 2% conversion rate, the ceiling is $0.80. Track CPC trends within a campaign rather than comparing across industries.
CPC FAQs
How do you calculate CPC?
Divide ad spend by total clicks: $500 of spend for 1,000 clicks is a $0.50 CPC. Platforms report this as average CPC; what you pay for any individual click varies with the auction.
Why is my CPC increasing?
Common causes are more competition in the auction (seasonal peaks, new advertisers), lower ad relevance or Quality Score, narrower targeting, or a bid strategy chasing higher-value users. Check impression share and auction insights before changing bids.
Is a lower CPC always better?
No. Cheap clicks from poor placements or loose match types often convert badly and raise your cost per acquisition. Optimise for cost per conversion and revenue, and treat CPC as a diagnostic.
Last reviewed October 3, 2026.