What is cost per click (CPC)?
Cost per click is the average price you pay for each click on a paid ad. It is the base unit of paid-search economics, but on its own it says nothing about whether a campaign is profitable. A high CPC is fine if those clicks convert into valuable customers, and a low CPC is worthless if they never convert. Read CPC alongside cost per conversion and lead value.
How this calculator works
The formula: Cost per click = ad spend ÷ clicks Click-through rate = clicks ÷ impressions Cost per conversion = ad spend ÷ conversions Conversion rate = conversions ÷ clicks
Impressions and conversions are optional. Add them to turn a simple CPC into a fuller picture of campaign efficiency.
What is a good CPC for B2B SaaS?
CPCs vary widely: high-intent Google Search terms for SaaS often run $5 to $50+ per click, and LinkedIn is frequently higher. The raw number matters less than the outcome, so judge CPC by cost per conversion and whether that stays below your value per lead.
How to lower CPC
- Raise ad relevance and quality score. More relevant ads pay less per click.
- Tighten targeting and negatives. Stop paying for clicks that never convert.
- Improve click-through rate. Better creative earns cheaper clicks.
- Build organic rankings. Owning the same keywords organically lowers your blended cost per click.
Frequently asked questions
How do you calculate cost per click?
CPC = ad spend ÷ clicks. $5,000 producing 400 clicks is $12.50 CPC. Add impressions for CTR and conversions for cost per conversion and conversion rate.
What is a good CPC for B2B SaaS?
It varies by channel and intent: $5 to $50+ on Google Search, often higher on LinkedIn. Judge it by cost per conversion versus your value per lead, not the raw number.
What is the difference between CPC and CPM?
CPC is cost per click; CPM is cost per thousand impressions. CPC aligns with performance; CPM suits awareness. Effective CPC = CPM ÷ (1000 × CTR).
How can I lower CPC?
Improve ad relevance and quality score, tighten targeting, lift click-through rate, and build organic rankings for the same terms to reduce paid reliance.