CPC Calculator

The 5-second test to determine whether your ads are profitable! With Adsbot’s new CPC calculator, you can stop the guesswork and mathematically pinpoint your ads’ success. All you need to do is input two things about your campaign: advertising cost and number of clicks. With the help of a cost per click calculator, you will never have to guess if your ads are at the top.

What Is Cost Per Click (CPC)?

CPC in digital marketing means the cost of one potential customer’s click on one of your ads. This means that if your cost click is $2.00, it costs you $2.00 when someone clicks on your ad.

Advertisers pay this money to paid advertising channels such as Google Ads, Meta, Microsoft, and Amazon. It is important because it shows the cost of displaying ads to a specific audience or bidding on a targeted keyword.

How to Calculate CPC?

For those asking “How to calculate CPC?”, you can manually input your data into a calculator. Or, better yet, you can use Adsbot’s new tool to view your cost click in real time! Our cost per click formula tool is easy to use because it only requires two data points to determine whether your ads are successful or not. All you need to do is:

• Calculate your total campaign cost. If you don’t know the exact number, you can view it on the analytics dashboard of your paid advertising channel.
• Next, calculate your clicks the same way.
• Lastly, put these two data points into our tool to calculate.

You can bookmark this page to easily access the CPC of your campaigns.

Cost Per Click (CPC) Formula

To calculate this important metric, you first need to know the cost per click formula in digital marketing:

CPC = Advertising Expense / Total Clicks

For example, if you spent 2000$ on a Google Ads campaign and received 1000 clicks, your Google Ads CPC calculator is:

CPC = 2000$ / 1000 clicks = 2$ per click

Now you have calculated the expense per click of this campaign!

What Is a Good CPC?

A good CPC is determined by various factors such as industry, ad rank, brand vs. non-brand keywords, competition, and keyword match type. It also depends on the ad networks you use (such as Google Ads and Meta Ads).

For you to tell if your click expense is good, you need to know your breakeven CPC. To find your breakeven CPC, you need to take your average profit per conversion and multiply it by your conversion rate. Using your average conversion rate from your advertising accounts is suggested. Let’s say your average profit per conversion is $20, and your conversion rate is 2%. Breakeven CPC = $20 (average profit per conversion) * 2% (conversion rate). In this case, the breakeven CPC is = $20 * 0.02 = $0.40 (40 cents).

So, what is a good CPC? For your business, a good click cost needs to be less than whatever your breakeven CPC is that you just calculated. This formula provides a specific number for you and your business to help run a profitable online advertising account.

Average CPC Per Industry

A recent study found that a good CPC for Google Ads is around 1$ to 2$. As you can see in the chart below, average CPC is different for every industry.

How to Decrease CPC?

If your click expense is above average when you use our tool to calculate it, chances are, you ask yourself, “How can I lower CPC?” Firstly, you may want to target more “specific” keywords. Broad keywords are expensive, so you want to use long-tail keywords. 

Raising your quality score is another important aspect. If you want to improve your quality score, make your ads more relevant. This means that your ad copy and image match your keywords.

You can also raise your CTR through A/B testing. We have a blog post dedicated to explaining all sides of A/B testing, but basically, it involves a data-centered approach to marketing. Advertisers create two or more variations of their ads and spend their budget on the more successful one. 

Lastly, use negative keywords. Experts say that regularly adding negative keywords improves the health of your account. Furthermore, adding negative keywords helps your ads be more relevant. You can use Adsbot for adding negative keywords, as Adsbot has a highly effective tool that regularly searches for negative keywords. Once you stop paying for keywords you don’t want to use, your click expense will decrease.

FAQ

What does the Google Adwords cost per click calculator mean?

Google Adwords cost per click calculator means it’s Google Ads cost per click calculator. Google AdWords is the former name of Google Ads.

What does the average CPC formula mean?

The average CPC formula means that it is on average. When you calculate your cost click, it doesn’t mean that every click is costing you, for example, 2 dollars. It means that on average, your click expense is 2 dollars.

Does Adsbot help me optimize my CPC?

Yes, with Adsbot’s new AI Insights feature, you can now access your analysis without needing the manual work of looking it up or putting it into a calculator! 

Adsbot’s powerful AI evaluates click-through rates to measure user engagement with ads, while identifying both high-performing and low-performing campaigns to highlight what’s working well and what needs improvement. 

Additionally, the AI tracks visit numbers to gauge overall traffic generation, monitors ad costs to assess budget efficiency, reviews Performance Max campaigns for automated campaign optimization insights, and calculates cost per conversion to determine the true value and profitability of each campaign effort.

For example, on AI Analysis > Campaign Performance, the AI evaluates cost per conversion metrics to show you where your budget is working hardest, comparing the efficiency of different campaigns to help you understand performance variations.