What is CPC (Cost Per Click)?

CPC (Cost Per Click) is the price of one ad click. Billing model in search, parts of display/social, and native networks. For arbitrageurs, CPC is direct funnel entry cost—compared to EPC and payout.

Formula

CPC = Ad spend ÷ Clicks. Average CPC in the ad account may differ from cost per tracker click due to invalid clicks, attribution, and redirect loss.

CPC drivers

Auction competition, GEO, placement, quality score, vertical, seasonality. Manual CPC vs automated bidding (target CPA/ROAS) changes bid dynamics.

Break-even

Zero-profit needs payout × CR > CPC, or break-even CR = CPC ÷ payout. With EPC > CPC and 100% approve, the funnel is profitable before fixed costs.

Notes

Low CPC with poor CR loses to moderate CPC with high CR. Click fraud skews account CPC. Tracker cost model (CPC/CPM) is required for correct ROI reports.

See also: CPM, CTR, EPC, search ads.