Max CPC vs actual CPC
Max CPC
- The most you will pay for one click
- You set it, or smart bidding sets it
- A ceiling, not the price
- One input to Ad Rank
Actual CPC
- What you really pay per click
- Set by the auction each time
- Often below your max
- Shown as average CPC in reports
Google says the actual CPC is the minimum needed to hold your ad position and meet thresholds. Better ad quality lowers it, because quality also counts toward Ad Rank.
How to calculate it
Average CPC equals cost divided by clicks. For example, $600 spent on 150 clicks is a $4 average CPC.
What a click is worth
CPC alone says little. A $40 click that turns into a $5,000 case beats a $2 click that never calls. Work backward from what a customer is worth.
| Step | Example |
|---|---|
| Average job value | $800 |
| Share of leads that book | 25% |
| Lead value | $200 |
| Share of clicks that become leads | 10% |
| Break-even CPC | $20 |
These are example numbers. Plug in your own to find what you can afford per click.
How to lower CPC
- Raise ad relevance by matching ads to each keyword group.
- Improve the landing page experience.
- Block irrelevant searches with negative keywords.
- Target the hours and areas that convert.
Read what affects CPC. Our PPC management judges every click against what your customers are worth.