How to calculate ad revenue
The cleanest ad revenue formula is monetized impressions divided by 1,000, multiplied by RPM. CPM is what advertisers pay; RPM is what you earn after platform cuts, unfilled inventory, and monetization limits. Use RPM when forecasting your own income.
- • Use total views only if every view can show ads.
- • Use monetization rate for ad blockers, skipped ads, or unfilled inventory.
- • Use RPM for take-home revenue and CPM for advertiser-side planning.
Where ad revenue calculators go wrong
Many calculators assume every view earns the same. Real ad revenue depends on geography, content category, seasonality, device, ad density, platform revenue share, and advertiser demand. Conservative inputs produce better decisions.
FAQ
What is the ad revenue formula?
Estimated ad revenue = monetized views or impressions divided by 1,000, multiplied by RPM.
Is RPM better than CPM?
For publishers and creators, RPM is usually better because it reflects take-home revenue. CPM is more useful for advertiser spend.
Why is my ad revenue lower than expected?
Unmonetized views, low-fill regions, ad blockers, poor viewability, platform cuts, seasonality, and low advertiser demand can all reduce revenue.