CPM, CPC, CPV: which number matters?
Every ad platform reports several costs. CPM tells you how expensive it is to be seen, CPC how expensive a visit is, and cost per lead or per sale how expensive a result is. CPM is useful for comparing audiences and creatives on the same platform, and for planning reach, but the number that decides whether ads are worth it is cost per result against what a result is worth.
Typical CPMs in India
| Platform | Typical CPM | Notes |
|---|---|---|
| Facebook & Instagram | ≈ ₹30–₹230 | Published figures disagree; check your own Ads Manager |
| YouTube (skippable, by CPV) | ≈ ₹40–₹150 | Usually bought per view (₹0.50–₹3) rather than per 1,000 impressions |
| YouTube non-skippable / bumper | ₹250–₹900 | Priced per 1,000 impressions, premium formats |
| YouTube display ads | ₹100–₹300 | Per one agency guide; other figures differ |
Ranges are from agency benchmark pages; see our Facebook adsand YouTube ads calculators for sources. Your own account data is always better.
ROAS and break-even ROAS
ROAS looks at revenue, not profit. A campaign with 3× ROAS loses money if your margin is 30%, because break-even is 1 ÷ 0.30 = 3.33×. Work out your margin honestly, including packaging, delivery, payment gateway fees and returns, and judge every campaign against the break-even number the calculator gives you.
- ROAS = revenue ÷ ad spend.
- Break-even ROAS = 1 ÷ gross margin.
- Profit after ads = revenue × gross margin − ad spend.
Frequently asked questions
What is CPM and how is it calculated?
CPM is the cost per 1,000 impressions (the M is the Roman numeral for 1,000). CPM = cost ÷ impressions × 1,000. If you spent ₹3,000 for 20,000 impressions, your CPM is ₹150.
What is a good CPM in India?
It depends on the platform and audience. Published Indian figures run from about ₹30 to ₹230 on Facebook and Instagram and ₹40–₹150 on YouTube, and they disagree with each other. A low CPM is only good if the people you reach are the right ones.
How do I calculate ROAS?
ROAS = revenue from ads ÷ ad spend. ₹50,000 in sales from ₹10,000 of ads is a ROAS of 5× (or 500%). It does not include your product, delivery or GST costs, which is why break-even ROAS matters.
What is break-even ROAS?
The ROAS at which ads neither make nor lose money: 1 ÷ gross margin. If you keep 40% of each sale after product and delivery costs, break-even ROAS is 1 ÷ 0.40 = 2.5×. Anything above that is profit; anything below is a loss even though the campaign 'made sales'.
What is a good ROAS?
It depends on your margin. A business keeping 50% of each sale breaks even at 2×, one keeping 25% at 4×, and one keeping 15% at about 6.7×. Compare your ROAS with your own break-even number, not with a general benchmark.