AdSense CPM Calculator allows you to calculate CPM of your AdSense ads. It is a free tool that will automatically calculate the CPM of the ad.
How to Calculate CPM (Cost Per Mille/Cost Per Thousand)?
CPM is the most common online advertising pricing model, and as the name suggests (Mile is a Latin word for thousand), the CPM model compensates the publishers for every 1000 views (impressions) an advertisement receives.
Unlike CPC, where you’ll be paid for the clicks you generated, advertisers will pay you for each impression you deliver. CPM is calculated by dividing the total cost to the advertiser by the number of impressions received on the ad and multiplying the result by 1000.
CPM = (Cost to the Advertiser / No. of Impressions) x 1000
In another way,
Cost to the Advertiser = CPM x (Impressions/1000)
Example: Suppose an advertiser agrees to pay $50 for certain ad campaigns and the ad receives 50000 impressions. Then the cost per 1000 impressions will come out to be (50/50000) x 1000 = $1.
Thus the CPM that the advertiser agrees to is $1.