What is CPC (Cost Per Click)?

CPC shows how much you pay on average for a single ad click. The e-commerce average is $1.16 on Google Ads and $0.45–1.72 on Meta Ads.

Formula

CPC = Total Ad Spend / Number of Clicks

Example

If you spent $500 and received 250 clicks, your CPC = $500 / 250 = $2.00 per click. But not all clicks are equal: $2.00 CPC + 2% conversion rate = $100 CPA.

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Related Terms

ROAS

ROAS (Return on Ad Spend) measures how much revenue you earn for every unit of currency spent on ads. Important: this is revenue, not profit.

CPA (Cost Per Acquisition)

CPA shows the cost of acquiring a single purchase through advertising. CAC is broader: it includes all marketing costs.

CTR (Click-Through Rate)

CTR shows what percentage of impressions resulted in clicks. Google Search average: 4-6%, Meta Feed: ~1.5%, Display: 0.5-1%.

CPM (Cost Per Mille)

CPM shows how much 1,000 ad impressions cost. It is the fundamental pricing model for display and social ads — Meta Ads averages $7-12.

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What is CPC (Cost Per Click)? | Margyn Glossary