CPC / cost per click is calculated quite simply, and is a very common measurement in digital advertising today. This metric is important for marketers when analyzing the performance of their digital campaigns, and a relative measure of the competitiveness of certain placements versus another.
For example, a highly competitive keyword with very high commercial intent behind it will very likely have a super high cost per click when compared to another keyword with less commercial intent. The CPC formula is very straightforward.
CPC = Cost / Clicks
Similar to CPM formula's we are able to juggle the formula around a bit in order to calculate total costs. Likewise you can use the formula to generate a forecast as well.
Cost = CPC x Clicks