How To Calculate YouTube RPM

A lot of creators hear people talk about RPM, but many still don’t fully understand how it’s actually calculated.

The formula is actually very simple.

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The RPM Formula

YouTube RPM is calculated like this:

RPM = Total Revenue ÷ Total Views × 1000

For example:

• Revenue: $500
• Views: 100,000

The RPM would be:

$5 RPM

That means the creator earned $5 for every 1,000 views.

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RPM Is Different From CPM

Many beginners confuse RPM and CPM.

CPM refers to what advertisers pay.

RPM refers to what creators actually earn after YouTube takes its share.

That’s why RPM is always lower than CPM.

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Why RPM Changes Between Channels

Two creators with similar views can earn completely different amounts.

RPM depends on factors like:

• Audience country
• Niche
• Watch time
• Engagement
• Advertiser demand

Finance and business channels often earn much higher RPM than entertainment channels.

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Why RPM Matters

RPM gives creators a better understanding of channel profitability.

It helps estimate:

• Monthly revenue
• Video performance
• Niche potential

A creator with fewer views but higher RPM can sometimes earn more overall.

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Improving RPM

Creators often improve RPM by:

• Targeting higher value audiences
• Creating longer videos
• Focusing on evergreen search content
• Entering higher paying niches

Small improvements in RPM can make a huge difference over time.

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Useful tools:

RPM Calculator

RPM vs CPM