--- title: Cost per Click (CPC) Explained & How It's Calculated | Jirav description: Cost-per-click is a common advertising metric used to measure the amount of money paid every time someone clicks on an ad and is redirected to a website. --- ![](https://www.jirav.com/hs-fs/hubfs/Imported%20sitepage%20images/header-logo.png?width=98&name=header-logo.png) - [ Resources ](https://www.jirav.com/resources) - Menu / Resources - [Resource Center ](https://www.jirav.com/resources) Blogs and resources on all things finance, FP&A, and Jirav [Webinars ](https://www.jirav.com/webinars) Learn more about Jirav and FP&A from industry experts [Events ](https://www.jirav.com/events) See our upcoming calendar of events [Help Center ](https://help.jirav.com/) Guide on how to use Jirav - [ Company ](https://www.jirav.com/company) - Menu / Company - [About ](https://www.jirav.com/company) Learn about Jirav’s story and meet our leadership team [News Coverage ](https://www.jirav.com/news) See the latest news and highlights [Press ](https://www.jirav.com/press-releases) Recent company announcements and updates [Careers ](https://www.jirav.com/careers) View current job openings and learn how to join the Jirav Tower ![business_env](https://www.jirav.com/hubfs/business_env.svg) [ For Businesses ](https://www.jirav.com/reporting-planning-purpose-built-for-businesses) ![accounting_calc](https://www.jirav.com/hubfs/accounting_calc.svg) [ For Accounting & CFO Firms ](https://www.jirav.com/reporting-planning-purpose-built-for-accounting-cfo-advisory-firms) [ Get a Demo ](https://www.jirav.com/request-demo) [ Sign in ](https://app.jirav.com/) ![](https://www.jirav.com/hubfs/April2021/images/banner-shap.png) BLOG # Cost per Click (CPC) Explained & How It's Calculated | Jirav [![](https://www.jirav.com/hubfs/April2021/images/fb-icon.png) ](http://www.facebook.com/share.php?u=https://www.jirav.com/ecommerce-metrics-library/cost-per-click/) [![](https://www.jirav.com/hubfs/April2021/images/tw-icon.png) ](https://twitter.com/share?url=https://www.jirav.com/ecommerce-metrics-library/cost-per-click/) [![](https://www.jirav.com/hubfs/April2021/images/in-icon.png) ](http://www.linkedin.com/shareArticle?mini=true&url=https://www.jirav.com/ecommerce-metrics-library/cost-per-click/&summary=&source=CeBIT) 1 minute read ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) ### What is CPC? CPC is a common advertising metric used to measure the cost of each click on an ad. Essentially, it's the amount of money paid every time someone clicks on an ad and is redirected to a website. CPC is used in a variety of digital advertising channels, including Google Ads, Facebook Ads, and more. ### Why CPC Is Important CPC is important, because it directly impacts the overall cost of your advertising campaigns. The lower your CPC, the more traffic you can get for your budget, which can ultimately lead to more conversions and revenue. On the other hand, if your CPC is too high, you may not get enough traffic to generate a positive return on investment. ### How to Calculate CPC There are a number of ways to calculate CPC. The formula we prefer is as follows: CPC = Paid Marketing Expense / Website Traffic For example, a company is running a paid marketing campaign to drive traffic to its website. During the campaign, the company spent $1,000 on advertising, which resulted in 400 visits to the website. The cost per click based on website traffic would be: CPC = $1,000 / 400 visits = $2.50 per visit So in this example, the cost per click based on website traffic is $2.50 per visit. This means that the company is paying an average of $2.50 for every visit to their website that resulted from the paid marketing campaign. ##### Jirav Published April 25, 2023 ###### Related topics - [Metrics library](https://www.jirav.com/ecommerce-metrics-library/tag/metrics-library) - [E-commerce metrics library](https://www.jirav.com/ecommerce-metrics-library/tag/e-commerce-metrics-library) ## Related blog posts ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### What is ROAS? 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How is it Calculated? | Jirav [ Read more ](https://www.jirav.com/ecommerce-metrics-library/contributing-margin) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### What is Paid Marketing Spend? Why is it Important? Jirav [ Read more ](https://www.jirav.com/ecommerce-metrics-library/paid-marketing-spend) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### Customer Acquisition Cost (CAC): How to Calculate | Jirav [ Read more ](https://www.jirav.com/ecommerce-metrics-library/customer-acquisition-cost) [Load more](##) ## Let’s get started! [ Request a demo ](https://www.jirav.com/request-demo) ![](https://ws.zoominfo.com/pixel/GayWM7nWYSEC9X3nq2tn) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jirav", "url" : "https://www.jirav.com/ecommerce-metrics-library/author/jirav" }, "dateModified" : "2023-04-25T14:53:02.677Z", "datePublished" : "2023-04-25T14:53:02.000Z", "headline" : "Cost per Click (CPC) Explained & How It's Calculated | Jirav", "mainEntityOfPage" : { "@id" : "https://www.jirav.com/ecommerce-metrics-library/cost-per-click", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.jirav.com/hubfs/Jirav%20Logo%20-%20176x75%20(small%20logo).png" }, "name" : "Jirav" } } ``` ```json { "@context" : "http://www.schema.org", "@type" : "AccountingService", "address" : { "@type" : "PostalAddress", "addressCountry" : "United States", "addressLocality" : "San Francisco", "addressRegion" : "CA", "postalCode" : "94102", "streetAddress" : "25 Taylor Street" }, "description" : "Jirav is a business planning software powering financial planning and analysis in the cloud with all-in-one forecasts, budgets, reports, and dashboards", "geo" : { "@type" : "GeoCoordinates", "latitude" : "37.782585", "longitude" : "-122.411255" }, "image" : "https://www.jirav.com/hs-fs/hubfs/Jirav_SitePageAssets_Feb2018/Jirav%20Logo%20for%20top%20nav.png?width=1200&height=510&name=Jirav%20Logo%20for%20top%20nav.png", "logo" : "https://www.jirav.com/hs-fs/hubfs/Jirav_SitePageAssets_Feb2018/Jirav%20Logo%20for%20top%20nav.png?width=1200&height=510&name=Jirav%20Logo%20for%20top%20nav.png", "name" : "Jirav", "openingHours" : "Mo, Tu, We, Th, Fr 09:00-17:00", "priceRange" : "$100/month-$750/month", "sameAs" : [ "https://www.instagram.com/gojirav/", "https://www.linkedin.com/company/jirav/", "https://twitter.com/GoJirav", "https://www.facebook.com/GoJirav/" ], "url" : "https://www.jirav.com/" } ```