: How does Google's Traffic Estimator calculate the "Estimated Avg. CPC"? I use Google's Traffic Estimator to calculate the Estimated Average Cost Per Click. I use the following filters: Locations:

@Barnes591

Basically you can use the formula for calculating the average cpc
average cpc= (ad rank/quality score)+ estimated first page bid
max cpc=0
you find the quality score of that keyword
estimated first page bid =$.01
then you can calculate average cpc of that keyword

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@Cofer257

The "Max CPC" field is the maximum you wish to pay per click. If you enter a Max CPC of 0 then you will never pay more than 0 per click, so the average will always be less than 0 - in this case .08.

However, restricting it to Max CPC means you're cutting out all the clicks from to 0, therefore the average CPC will be less.

Quick example: two companies by ads at per click and per click respectively. The Average CPC here is . Now, if your Max CPC was then the ad is ignored, meaning the new average is just .

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