How to Calculate Ecpm

1. Determine the number of impressions, or number of times the ad was shown. For example, over the past year the advertisement may have been viewed 10,000 times.
2. Determine the amount of earnings the ad made. For example, over the past year, an ad may have brought in $50 of revenue.

3. Divide the number of total earnings by the number of impressions and multiply it by 1,000. The sum is the effective cost per thousand. In this example, divide 50 by 10,000 and then multiple by 1,000 to get $5. Five dollars is your effective cost per million.