How to Calculate CPC

Cost Per Click, or CPC, is a measure of the money being paid by advertisers to search engines and 'Net publishers for rolling out Pay Per Click (PPC) programs, such as Google AdSense. These programs are a relatively simple way of boosting your income if you're a blogger or otherwise work online. Simply put, you earn money whenever a visitor to your page or blog clicks on an ad. To calculate how much you will earn on average for each click, follow a simple formula to determine the CPC.

Instructions

1. Bring up the Web page with the ad on your site or blog for reference. Determine your total income generated from this particular ad. If you're using a PPC program, like AdSense, your should easily be able to pull up a breakdown of this data.

2. Determine the total number of times that someone clicked on this particular ad. These figures should be laid out in the PPC program.

3. Divide the total income by the total number of clicks to determine the average CPC.

Tips & Warnings

• Remember that this is only an average; the actual CPC rate is determined by the advertiser.

References

• Shimon Sandler: How to Calculate Online Metrics
• Internet Technology Blog: How to Calculate your CPC of an Ad - PPC Programs and Cost Per Click
• Static Income Daily : $2.09: How Does Google Calculate CPC, Quality Score and Ad Ranking?