The formula for Google AdSense calculation

Here is an explanation about the Google AdSense calculation formula to help new AdSense beginners to understand and optimize their AdSense revenues.

- Click through rate (CTR): is the number of clicks an ad unit receives divided by the number of times the ad unit is shown (impressions).

- Effective CPM (eCPM) : is the cost per 1000 impressions, CPM is a useful way to compare revenue across different channels and advertising programs. It is calculated by dividing total earnings by the number of impressions in thousands.

- Impressions: represents the number of times an ad is displayed on Google or on sites or products in Google’s ad network. A page impression is counted each time an ad unit is displayed on a publisher’s site. Page impressions are used when calculating reports for AdSense publishers, rather than ad impressions

- Clicks: the number of generated clicks by all your ads.

- Earnings: is total money that would be given by Google AdSense for publishers who participate in their affiliate programs.

- Earnings Per Click (EPC) : this is the average cost per click that would be given to publishers depends on the advertiser’s bid, sum of the click, page impressions. However, it’s still being a Google AdSense Secret.

The formula for Google AdSense calculation is:

CTR = (Clicks / Impressions) * 100
EPC = Earnings per Click

eCPM = (Earnings / Impressions) * 1000
eCPM = CTR * EPC * 10

Earnings = eCPM * Impressions / 1000
Earnings = CTR * EPC * Impressions / 100

Example: I’ve got 31 clicks for 1700 impressions with an EPC of 0.05 $

CTR = (31 / 1700) * 100 = 1.82352 = 1.83 %

eCPM = 1.82352 * 0.05 * 10 = 0.91176 = 0.92 $
eCPM = (1.55 / 1700) * 1000 = 0.9117 = 0.92 $

Earnings = 0.91176 * 1700 / 1000 = 1.549992 = 1.55 $
Earnings = 1.82352 * 0.05 * 1700 / 100 = 1.549992 = 1.55 $