Earnings per Click (EPC) is a mathematical formula used to determine the commissions earned per click in online advertising. It can be calculated by taking your commissions and dividing it by the total number of clicks. The formula to determine EPC is as follows:

Commissions Earned / Total Clicks = EPC

It is important to understand your EPC, because it not only indicates how well an offer will convert; it also shows the real worth of a click. This is a good way to determine which offer will perform the best when comparing similar offers with different payouts.

How to Evaluate Earnings per Click

To help you understand how to evaluate EPC, consider the following example:

You are about to promote two offers. Offer A pays $25 per sale and Offer B pays $50 per sale. Offer A received a total of 10,000 clicks. Offer B received a total of 15,000 clicks. At the end of the month, Offer A has a total of 40 sales and Offer B has 25 sales.

Which offer performed better?

Offer A

EPC: $25 * 40 sales = $1000 commissions

EPC = Commissions Earned ÷ Total Clicks = $1000/10,000 clicks = .10 EPC or Earnings per Click

Offer B

EPC: $50 * 25 sales = $1250 commissions

EPC = Commissions Earned ÷ Total Clicks = $1250/15,000 clicks = .08 EPC or Earnings per Click

As you can see, Offer A performed the best. The highest payout does not always perform the best.