If you're monetizing on YouTube, understanding the difference between RPM (Revenue Per Mille) and CPM (Cost Per Mille) is critical.
Many creators focus on CPM because it looks impressive. But CPM does not reflect what you actually earn.
CPM = What advertisers pay.
RPM = What you actually earn per 1,000 total views.
What Is CPM? (Cost Per Mille)
CPM represents the amount advertisers pay for 1,000 ad impressions on your videos.
Important details:
- Calculated before YouTube’s revenue share
- Only applies to monetized ad impressions
- Reflects advertiser demand in your niche
CPM Formula:
CPM = (Advertiser Spend ÷ Monetized Ad Impressions) × 1000
A high CPM usually indicates a high-value niche such as finance, business, or technology.
What Is RPM? (Revenue Per Mille)
RPM measures your total earnings per 1,000 views — after YouTube takes its cut.
RPM includes:
- Ad revenue (after 45% share)
- Channel memberships
- Super Chat & Super Thanks
- YouTube Premium revenue
RPM Formula:
RPM = (Total Revenue ÷ Total Views) × 1000
This is the metric that reflects real monetization performance.
CPM vs RPM: Side-by-Side Comparison
| Metric | CPM | RPM |
|---|---|---|
| Represents | Advertiser payment | Your real income |
| YouTube cut included? | No | Yes |
| Based on | Monetized ad views only | All video views |
| Used for | Market value | Revenue optimization |
Why RPM Is Always Lower Than CPM
Creators often see a $12 CPM but only a $3–$4 RPM. The difference exists because:
- YouTube takes 45% of ad revenue.
- Not every view shows an ad.
- RPM includes all views — even unmonetized ones.
1,000 total views
600 monetized views
$10 CPM
Revenue = (600 ÷ 1000 × $10) × 0.55 = $3.30
Your RPM = $3.30
Which Metric Should You Focus On?
Focus on RPM.
CPM tells you how attractive your niche is to advertisers. RPM tells you how effectively your content converts attention into income.
If CPM is high but RPM is low, possible issues include:
- Low audience retention
- Poor mid-roll ad placement
- High percentage of unmonetized views
- Weak monetization diversification
How to Increase RPM in 2026
- Create longer content eligible for mid-roll ads
- Improve audience retention rate
- Target Tier-1 countries (US, UK, Canada, Australia)
- Maintain advertiser-friendly content
- Add memberships and fan funding options
- Combine YouTube income with affiliate marketing and AdSense monetization
How RPM Connects to Your Earnings
Once you know your RPM, calculating income becomes simple:
Earnings = (Views ÷ 1000) × RPM
You can estimate your potential income using our:
Calculate Your Real YouTube Income
Stop guessing. Estimate your earnings accurately using real RPM values.
Use RPM Calculator →Quick Summary: RPM vs CPM in One Paragraph
CPM (Cost Per Mille) measures how much advertisers pay per 1,000 monetized ad impressions before YouTube takes its cut. RPM (Revenue Per Mille) measures how much a creator actually earns per 1,000 total views after YouTube's revenue share and including all monetization sources. For income optimization, RPM is the metric that matters.
Final Verdict
CPM measures advertiser demand.
RPM measures creator profitability.
If your goal is income growth, optimize RPM — not vanity metrics.
Revenue varies by niche, geography, seasonality, and audience behavior.