What is CPC? (Cost Per Click)
CPC is the average amount you pay each time someone clicks your ad. It is the primary cost driver in search advertising.
Formula
CPC = Total Ad Spend ÷ Total Clicks
Example
If $500 in spend produces 250 clicks, your average CPC is $2.00.
Why CPC matters
CPC varies enormously by industry and competition — legal and insurance keywords cost many times more than retail. Knowing your industry's benchmark CPC helps you budget realistically.
What's a good CPC?
There is no universal 'good' CPC; compare against your own industry benchmark. Across 23 industries the average Google Ads CPC is $4.77.
Compare across every vertical: average CPC by industry →
Do the math: CPC calculator →