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Marketing and digital

Facebook ads cost calculator

Facebook ads cost calculator

What a budget buys in impressions and clicks — read twice, once from the CPM and once from the CPC, because the two do not agree.

How this is calculated

Impressions = budget / CPM x 1,000. Clicks follow from the impressions and the rate, or from the budget and the cost per click. The two routes agree only when CPM = 1,000 x CPC x CTR.

  • Those three platform figures are one equation, not three independent numbers. Enter a CPM and a click-through rate from the same reporting and the cost per click is already decided; typing a fourth, borrowed figure is how a plan ends up with a budget that cannot buy the clicks it promises.
  • Nothing here forecasts reach, frequency or a learning phase. A platform spends a budget across placements whose prices differ, and the auction decides the split on the day the campaign runs.

A budget, a cost per thousand impressions and a cost per click are not three independent numbers. They are one equation, so this page answers the same question by two routes and shows you where they disagree.

Why two readings of one budget

CPM, CPC and CTR are tied by CPM = 1,000 × CPC × CTR. Fix any two and the third is decided, which is why a plan built by typing three numbers from three different sources produces a budget that cannot buy the clicks it promises — the mismatch is arithmetic, not a market moving.

So the impressions come from the budget and the CPM, and the clicks are shown twice: once as the share of those impressions that click, and once as the budget divided by the cost per click. The last line tells you which of the two you have been working with.

Worked through

₹50,000 at a ₹220 CPM buys 50,000 ÷ 220 × 1,000 = 227,273 impressions. At a 1.2 per cent click-through rate those become 2,727 clicks, and the cost per click the two figures imply is 220 ÷ (10 × 1.2) = ₹18.33.

Type ₹20 as the cost per click and the same budget buys 2,500 clicks — a difference of nearly 230 clicks on one campaign, which is exactly the gap between a CPM taken from one reporting window and a CPC taken from another.

Questions readers ask

What should I enter for CPM in India?

Your own account’s figure, for the objective and the placement you are buying, from the period you are planning. A CPM quoted in a blog is a snapshot of somebody else’s auction, and the honest input here is a number you can name a source for.

Why does the page not forecast reach or frequency?

Reach is a function of the audience a delivery system can actually find, and a platform spends a budget across placements whose prices differ from each other. Those are decided inside the auction on the day the campaign runs, and no arithmetic on a static page can predict them.

Is a click a visit?

Not usually. A link click is charged whether the page loaded or the visitor left before it did, so clicks are not sessions and sessions are not conversions. If you are planning against a conversion rate, take this page’s click figure and apply your own landing rate separately.

What does the flag on the last line mean?

Whether the CPM and the click-through rate you entered already imply the cost per click you entered. Inside about one per cent the three figures came from one reporting; outside it, one of them belongs to a different campaign, market or window.

Tools

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