Why Most Creators Calculate YouTube Earnings Wrong
The biggest mistake new creators make is assuming YouTube pays a fixed rate per view. It does not. YouTube pays based on advertiser demand, audience geography, video length, niche, and seasonality.
The good news: once you understand the three core formulas, you can predict your earnings within a realistic range.
The Three Metrics That Matter
1. RPM (Revenue Per Mille)
RPM is your actual earnings per 1,000 views after YouTube takes its 45% cut.
Formula: RPM = (Total Earnings / Total Views) × 1,000
2. CPM (Cost Per Mille)
CPM is what advertisers pay for 1,000 ad impressions.
Formula: CPM = (Advertiser Cost / Impressions) × 1,000
3. Average View Duration
Longer watch time means more mid-roll ads and higher total revenue.
Advertisement
Average RPM by Niche
- Finance: $10-$25
- Tech: $6-$15
- Business: $5-$12
- Gaming: $1.50-$5
- Entertainment: $1-$4
Step-by-Step Calculation
- Open YouTube Studio → Analytics
- Note Total Revenue and Total Views
- Apply RPM formula
- Project forward
Use Our Calculator
Try our YouTube Money Calculator for instant results.