Cost Per Click Calculator: How to Run the Numbers At Home

by sarah on Friday, 27th July 2018

The abundance of social media sites and search platforms in today’s technological ties have changed the concept of traditional advertising in a multitude of ways.

Social Media

Market analysts found that a third of all advertising spending is directed towards digital avenues, while roughly 80% of all revenue is going towards digital marketing efforts aimed at the implementation of display-style advertisements and search engine advertising.

Digital Marketing

With the enormous revenue, energy, and resources going into digital advertising and marketing campaigns, companies must have a thorough and concise understanding of the various critical elements involved in executing successful online campaigns.

A large portion of the necessary knowledge and awareness of achieving successful campaigns involves having a firm grasp on the concept of cost-per-click (CPC) models, which in its most simplified form, is the amount you or your company pays for every click on your CPC advertisements in search engine platforms such as Google AdWords.

CPC

Your cost per click relies on numerous factors, including, but not limited to, your quality score, maximum bid amount, and your position against the ad ranking of other advertisers who are bidding for the same keywords that you want.

However, the complex and somewhat perplexing tech language involved with explaining how CPC works is not the overarching purpose of this article. Learning about your quality score, maximum bidding, and ranking against competitors are important concepts that require in-depth explanations in an article intended for that subject matter.

Instead, we will today discuss how to easily calculate the cost per click amounts at home, through a variety of methods that facilitate and streamline the process for you in an immensely time-saving manner.

By now, you understand that CPC stands for Cost Per Click and that it relates to the advertising costs you are paying for the number of clicks you receive on your particular ads.

Calculating the Cost Per Click is achieved through a universal formula used by all individuals, businesses, and organisations to determine their particular CPC.

Cost Per Click

The official formula for calculating the cost per click is as follows:

Cost Per Click Calculator Formula

Don’t let the above formula give you an instant form of post-traumatic stress syndrome by taking you back to the not-so-fond memories of high school algebra class.

The formula is quite simple to solve and merely involves the insertion of relevant numbers. Breaking those numbers down into a simplified form will make the process easy for anyone trying to decipher CPC-related information.

Consider the following examples:

Example #1

• Your cost per click (CPC) is $4.00
• Your specific advertisement is shown 3,000 times but for whatever reason, receives no clicks
• End result: You pay nothing

Example #2

• Your cost per click (CPC) is $4.00
• Your specific advertisement is shown 3,000 times of which you receive 5 clicks
• End result: You pay $4.00 x 5 (clicks) for a total of $20.00

Important to remember when calculating the cost per click is the following:

• CPC = Total Cost divided by Total Clicks
• Total Cost = CPC multiplied by Total Clicks

If you’re not a fan of calculations and want rapid and precise results, you can use any one of the many cost per click calculators available online.

Company name: Omni Calculator

Web address: www.omnicalculator.com

Services:

• Free cost per click calculator
• CPM calculator
• Online marketing conversion calculator
• Website ad revenue calculator
• Twenty-four different types of sales-related calculators
• Three types of tax calculators
• A collection of other calculators for things such as commercial leases, net to gross, depreciation, salary to hourly and many more

Company name: Webpage FX

Web address: www.webpagefx.com

Services:

• Free cost per click calculator
• 5 Second CPM Calculator
• In-depth explanations of SEO, MOFU, BOFU
• Reputation management services
• Mobile marketing services
• E-commerce email retargeting
• Review management pricing
• Custom monthly reporting
• Personalized web content
• Infographics and motion graphics
• Web video production services

Company name: Jeffalytics

Web address: www.jeffalytics.com

Services:

• Free, user-friendly, easy to use cost per click calculator
• Free PPC course
• Simple, in-depth explanations of any important concepts including:

• How much should you spend on Google AdWords
• How to plan your Google AdWords budget
• How to use Google Keyword Planner to discover cost-per-click estimates
• How to factor your product costs into your Google AdWords budget
• How to use your estimated budget to plan your AdWords strategy
• How to procure the most effective AdWords
• How to project the impact online advertising has on your financial bottom line

Company name: WordStream

Web address: www.wordstream.com

Services:

• Free cost per click formula assistance
• Free graders
• PPC University - teaching businesses through three guided courses on everything needed to know about making PPC work for your business
• A bevvy of free tools that help your business continuously improve, evolve, and outrank the competition.

The free tools include the following:

• AdWords Performance Grader

The AdWords Performance Grader is an award-winning tool providing businesses, actionable tips, and was created through the analysation of over 70 billion dollars in AdWords spending

• Facebook Ads Performance Grader

• Wordstream’s brand new grader for Facebook that enables you to discover how you rank against competitors

• AdWords Landing Page Grader

• Allows your business to further explore meaningful ways of improving the AdWords Quality Score by providing data on how a business’s landing page stacks up against the competition
• Helps businesses to leverage Wordstream’s AdWords expertise to analyse on a deeper level to improve a business’s landing page

• Free Keyword Tool

• Leverages Wordstream’s thousands of searches and their associated analyses to discover hot new keywords for businesses to use

• Facebook Opportunity Calculator

• Helps businesses determine if their Facebooks advertisements are worth the investment

Company name: Calculate Stuff

Web address: www.calculatestuff.com

Services:

• Free cost per click calculator
• Among the most favoured calculators online due to its incredibly simple interface
• Calculates CPM (cost per thousand) or 1,000 impressions
• Calculates CTR
• Provides easy-to-understand information on a variety of subjects including tax, business, conversions and more

Another great resource to look into is Know Online Advertising at www.knowonlineadvertising.com, which provides a wealth of videos and online courses that can transform you into a well-versed pro quickly and efficiently.

Know Online Advertising’s informative site also provides simple explanations of concepts such as:

• Native advertising
• Mobile advertising
• Ad servers
• Targeting methods
• Programmatic buying
• Contains an immense glossary of terms so that you can become acclimated with the technical jargon you will inevitably encounter on your journey towards building a formidable online presence.

Also consider visiting The Online Advertising Guide at www.theonlineadvertisingguide.com, who make it their primary goal to help businesses navigate the moral and mental maze of online advertising a lot simpler for you – and all for free.

Conclusion

Online advertising is a multifaceted task involving numerous concepts that businesses must become fully acclimated with to stay on pace within a saturated market brimming with competitors investing substantial time and resources into creating powerful and compelling digital campaigns that serve as their primary online marketing tool.

Staying abreast of the language and practices involved with online advertising is not only recommended, but it is also a crucial necessity for the survival of your business.

Fortunately, there is a vast array of helpful tools available online that not only serve as sources of information explaining complex subjects but also help businesses to make rapid calculations of important figures such as cost per click and more.

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