About the CPC Calculator
Cost per click (CPC) is what you pay, on average, each time a shopper clicks your ad. In Amazon Ads you set bids, but the CPC you actually pay is set by the auction and is often lower than your bid. Your average CPC for a period is simply total spend divided by total clicks.
CPC only means something next to what a click is worth to you. For a book, that is your royalty multiplied by your conversion rate. If you earn $4.99 per sale and one in ten clicks buys, each click is worth about $0.50, so an average CPC of $0.40 leaves room for profit while $0.60 loses money on every click.
Enter spend and clicks for your average CPC. Leave the break-even comparison on and add your royalty and conversion rate to see your break-even CPC and the profit or loss per click. For a full bid plan with a target profit, use the Advertising Break-Even Calculator.
How It Works
Average CPC is ad spend divided by clicks.
Break-even CPC is your royalty per sale multiplied by your conversion rate. It is the average value of one click to you.
Profit per click is break-even CPC minus your average CPC. A negative figure is the average loss on every click.
Formula
- Average CPC
- CPC = Ad spend ÷ Clicks
- Break-even CPC
- Break-even CPC = Royalty per sale × Conversion rate
- Profit per click
- Profit per click = Break-even CPC − CPC
Example
$120 spent for 300 clicks, $4.99 royalty, 10% conversion rate
- Average CPC: $120 ÷ 300 = $0.40.
- Break-even CPC: $4.99 × 10% = $0.499.
- Profit per click: $0.499 − $0.40 = $0.099.
The average CPC is below break-even, so each click earns about $0.10 in profit on average.
Important Notes
- Average CPC hides variation. Some keywords may cost much more than average and still be the ones that sell.
- Your bid is the maximum you are willing to pay, not the CPC you are charged.
- Break-even CPC depends on conversion rate, which needs a few hundred clicks of data to be reliable.
- Kindle Unlimited reads and series read-through are not included in the value of a click.
Frequently Asked Questions
Is CPC the same as my bid?
No. Your bid is the most you are willing to pay per click. The actual CPC comes from the auction and is often below your bid. This calculator uses what you actually paid.
What CPC can I afford?
Up to your break-even CPC, which is royalty multiplied by conversion rate. To keep a profit margin, aim lower. The [Advertising Break-Even Calculator](/tools/advertising-break-even-calculator) finds a maximum CPC that keeps a target profit per sale.
Why are some CPCs so high in my genre?
Competitive genres attract many advertisers bidding on the same keywords and books. Authors with long series or high Kindle Unlimited read-through can afford higher CPCs than a single title can.
Should I lower bids if CPC is above break-even?
Lowering bids is the quickest fix, but also look at conversion rate. Improving your cover, description or price raises the CPC you can afford.
Does CPC differ by marketplace?
Yes. Auctions are separate in each marketplace and currency, so calculate CPC per marketplace using the currency selector.
Related KDP Tools
- Advertising Break-Even CalculatorFind your break-even CPC, break-even ACOS and maximum sustainable bid.
- KDP Ad Profit CalculatorModel clicks, conversions and royalty to see whether your Amazon Ads campaign makes money.
- CPA CalculatorCalculate cost per acquisition (cost per sale) from spend and conversions.
- CTR CalculatorCalculate click-through rate from impressions and clicks.
- ACOS CalculatorCalculate Advertising Cost of Sale, plus break-even and target ACOS for books.
- TACOS CalculatorMeasure ad spend against total sales, including organic, to see true ad dependency.