how is cost per click calculated 
a formula may be used to determine the rate you pay per click one of the most popular ways to calculate your cpc is some publishers or platforms like google ads use a bidding process to set their rates for instance google ads asks you to select the maximum amount you re willing to pay per click 2 google s platform then uses ad rank thresholds to determine the actual cost when your ad is clicked 3this means your cost varies up to your maximum because the platform ranks your bid ad quality position user signals search topics and related auctions and sets the cost per click 3 you can even have google automate the bids for you to increase your click through 4the platform then positions your ad based on your maximum amount with higher maximums achieving a higher placement on the page 2