Instantly calculate your Cost Per Click (CPC) to measure ad spend efficiency and optimize your campaign budgets. Understanding your CPC is the first step to improving your PPC performance and maximizing your return on investment.
Your Cost Per Click (CPC) is:
CPC is the average amount you pay for a single click on your ad. It is calculated by dividing the total cost of your campaign by the total number of clicks it received.
Formula: CPC = Total Cost / Total Clicks
Example: If you spent $500 on an ad campaign and received 1,000 clicks:
$500 / 1,000 clicks = $0.50 CPC
A 'good' CPC varies dramatically by industry, platform, and keyword competitiveness. For Google Search Ads, the average CPC across all industries is around $2-$4, but it can be less than $1 for some niches and over $50 for highly competitive terms like 'lawyer' or 'insurance'. A good CPC is one that allows you to acquire customers profitably (i.e., your Cost Per Acquisition is lower than your Customer Lifetime Value).
CPC (Cost Per Click) measures the cost of a single click on your ad. CPA (Cost Per Acquisition) measures the total cost to acquire a new customer or lead. CPC measures the cost of traffic, while CPA measures the cost of a result. You might have a low CPC, but if those clicks don't convert, your CPA will be high.
CPC varies because each platform (e.g., Google Search, Facebook, LinkedIn) has a different auction environment, user intent, and level of competition. CPCs on LinkedIn are typically higher than on Facebook because advertisers are targeting a professional audience and are willing to pay more for B2B leads.