How to Calculate Your YouTube Revenue [Step-by-Step]
Complete guide to calculating YouTube earnings. Learn the exact formulas, metrics, and methods to accurately estimate your channel's revenue potential.
How to Calculate Your YouTube Revenue [Step-by-Step]
Want to know exactly how much money you can make on YouTube? Whether you're just starting out or already monetized, understanding how to calculate your potential revenue is crucial for setting realistic goals and planning your content strategy.
In this comprehensive guide, we'll walk you through the exact formulas, metrics, and calculations YouTube creators use to estimate their earnings. No guesswork—just math.
Quick Answer: The YouTube Revenue Formula
Monthly YouTube Revenue = (Monthly Views × RPM) ÷ 1,000
Where:
- Monthly Views = Total views in a month
- RPM = Revenue Per Mille (earnings per 1,000 views after YouTube's cut)
- Divide by 1,000 to convert RPM to per-view rate
Example:
- 100,000 monthly views
- $5 RPM (varies by niche)
- Revenue = (100,000 × $5) ÷ 1,000 = $500/month
But there's much more to the story. Let's break down every component.
Understanding YouTube's Payment Structure
How YouTube Pays Creators
YouTube doesn't pay you directly for views. Instead, you earn money through the YouTube Partner Program (YPP) when ads run on your videos.
Revenue split:
- YouTube: 45% of ad revenue
- Creator: 55% of ad revenue
Example:
- Advertiser pays: $10 for 1,000 ad impressions (CPM)
- YouTube keeps: $4.50 (45%)
- You receive: $5.50 (55%)
Key Metrics You Need to Know
1. CPM (Cost Per Mille)
Definition: What advertisers pay YouTube for 1,000 ad impressions
Typical range: $3-$30 (varies widely by niche)
Examples:
- Finance content: $20-$40 CPM
- Tech reviews: $10-$20 CPM
- Gaming: $2-$5 CPM
Important: CPM is NOT what you earn—it's what advertisers pay.
2. RPM (Revenue Per Mille)
Definition: What YOU actually earn per 1,000 views (after YouTube's 45% cut)
Formula: RPM = (Total Revenue ÷ Total Views) × 1,000
Typical range: $1-$20 (varies by niche and audience)
Examples:
- Finance channel: $10-$20 RPM
- Tech channel: $5-$12 RPM
- Gaming channel: $1.50-$4 RPM
Important: RPM is the metric YOU should focus on for earnings calculations.
3. Playback-Based CPM vs Monetized Playbacks
Playback-based CPM: Ad revenue per 1,000 views (includes all views)
Monetized playback rate: Percentage of views that showed ads
Why it matters: Not all views show ads because:
- Ad blockers (10-30% of users)
- Age-restricted content
- Region restrictions
- YouTube Premium viewers (counted separately)
Typical monetized playback rate: 40-60%
Example:
- 100,000 total views
- 50% monetized (50,000 views showed ads)
- Effective ad reach: 50,000 views
Step-by-Step: Calculate Your YouTube Revenue
Method 1: Using RPM (Recommended)
This is the simplest and most accurate method if you're already monetized.
Step 1: Find Your RPM
If monetized, go to: YouTube Studio → Analytics → Revenue tab → RPM
If not yet monetized, estimate based on your niche:
- Finance/business: $10-$20 RPM
- Tech/education: $5-$12 RPM
- Lifestyle/food: $3-$6 RPM
- Gaming/entertainment: $2-$5 RPM
Step 2: Count Your Monthly Views
YouTube Studio → Analytics → Reach tab → Views
Or estimate:
- Videos per month: 8
- Average views per video: 5,000
- Monthly views: 8 × 5,000 = 40,000
Step 3: Apply the Formula
Monthly Revenue = (Monthly Views × RPM) ÷ 1,000
Example calculation:
- Monthly views: 100,000
- Estimated RPM: $6
- Revenue = (100,000 × $6) ÷ 1,000 = $600/month
Annual revenue: $600 × 12 = $7,200/year
Method 2: Using CPM & Monetized Playback Rate
More complex but gives you deeper insights.
Step 1: Identify Your Niche CPM
Average CPM by niche:
- Finance: $20-$40
- Tech: $12-$22
- Business: $15-$30
- Lifestyle: $6-$12
- Gaming: $3-$6
Step 2: Calculate Your RPM from CPM
RPM = CPM × 0.55 (YouTube's 55% creator share)
Example:
- Finance channel CPM: $30
- RPM = $30 × 0.55 = $16.50
Step 3: Account for Monetized Playback Rate
Effective RPM = RPM × Monetized Playback Rate
Example:
- RPM: $16.50
- Monetized playback rate: 50% (typical)
- Effective RPM = $16.50 × 0.50 = $8.25
Step 4: Calculate Revenue
Monthly Revenue = (Monthly Views × Effective RPM) ÷ 1,000
Example:
- 200,000 monthly views
- Effective RPM: $8.25
- Revenue = (200,000 × $8.25) ÷ 1,000 = $1,650/month
Method 3: Using Estimated Earnings Per View
Quick estimation method for planning.
Average earnings per view by niche:
- Finance: $0.008-$0.015 per view
- Tech: $0.005-$0.010 per view
- Lifestyle: $0.003-$0.006 per view
- Gaming: $0.002-$0.004 per view
Formula:
Monthly Revenue = Monthly Views × Earnings Per View
Example:
- Gaming channel: 500,000 monthly views
- Earnings per view: $0.003
- Revenue = 500,000 × $0.003 = $1,500/month
Calculating Revenue by Subscriber Count
Many creators wonder: "How much can I earn with X subscribers?"
Reality check: Subscribers DON'T directly generate revenue—VIEWS do.
However, subscribers influence view count:
Average views-to-subscribers ratio:
- Small channels (1K-10K): 10-30% of subscribers per video
- Medium channels (10K-100K): 5-15% per video
- Large channels (100K-1M): 3-10% per video
- Mega channels (1M+): 1-5% per video
Revenue Estimation by Subscriber Milestones
1,000 Subscribers (Monetization Threshold)
Typical stats:
- Views per video: 500-2,000
- Videos per month: 4-8
- Monthly views: 2,000-16,000
Estimated revenue (Lifestyle niche, $4 RPM):
- Low end: (2,000 × $4) ÷ 1,000 = $8/month
- Mid range: (8,000 × $4) ÷ 1,000 = $32/month
- High end: (16,000 × $4) ÷ 1,000 = $64/month
Reality: Most small channels earn $20-$100/month initially.
10,000 Subscribers
Typical stats:
- Views per video: 2,000-5,000
- Videos per month: 8
- Monthly views: 16,000-40,000
Estimated revenue (Tech niche, $8 RPM):
- Low end: (16,000 × $8) ÷ 1,000 = $128/month
- Mid range: (28,000 × $8) ÷ 1,000 = $224/month
- High end: (40,000 × $8) ÷ 1,000 = $320/month
Reality: $150-$500/month is typical at this level.
100,000 Subscribers
Typical stats:
- Views per video: 10,000-30,000
- Videos per month: 8-12
- Monthly views: 80,000-360,000
Estimated revenue (Business niche, $12 RPM):
- Low end: (80,000 × $12) ÷ 1,000 = $960/month
- Mid range: (200,000 × $12) ÷ 1,000 = $2,400/month
- High end: (360,000 × $12) ÷ 1,000 = $4,320/month
Reality: $1,500-$5,000/month. This is where YouTube becomes full-time income for some.
1,000,000 Subscribers
Typical stats:
- Views per video: 50,000-300,000
- Videos per month: 8-20
- Monthly views: 400,000-6,000,000
Estimated revenue (Mixed content, $8 RPM):
- Low end: (400,000 × $8) ÷ 1,000 = $3,200/month
- Mid range: (2,000,000 × $8) ÷ 1,000 = $16,000/month
- High end: (6,000,000 × $8) ÷ 1,000 = $48,000/month
Reality: $10,000-$50,000/month from AdSense alone. Plus 2-5x more from sponsorships.
Calculating Revenue from Different Video Lengths
Video length significantly impacts earnings because longer videos allow more ad placements.
Short Videos (Under 8 minutes)
Ad limitations:
- Pre-roll ad (beginning)
- Post-roll ad (end)
- Total: 1-2 ads maximum
Example calculation:
- 100,000 views
- 5-minute video
- Tech niche: $8 CPM
- Estimated revenue: $300-$400
Earnings per 1,000 views: $3-$4
Medium Videos (8-15 minutes)
Ad opportunities:
- Pre-roll ad
- 2-3 mid-roll ads (manually placed)
- Post-roll ad
- Total: 3-5 ads
Example calculation:
- 100,000 views
- 12-minute video
- Tech niche: $8 CPM
- Estimated revenue: $500-$700
Earnings per 1,000 views: $5-$7
Comparison: 40-75% MORE revenue than 5-minute video with same views!
Long Videos (15+ minutes)
Ad opportunities:
- Pre-roll ad
- 4-6 mid-roll ads
- Post-roll ad
- Total: 5-8 ads
Example calculation:
- 100,000 views
- 20-minute video
- Tech niche: $8 CPM
- Estimated revenue: $600-$900
Earnings per 1,000 views: $6-$9
BUT: Risk of lower retention = fewer people see all ads.
Optimal length: 10-15 minutes with high retention (50-70%) = maximum revenue.
Revenue Calculation by Content Category
Different niches have dramatically different earning potential.
High-Revenue Niches
Finance & Investing
Average RPM: $15-$25
Example channel:
- 150,000 monthly views
- $20 RPM
- Revenue = (150,000 × $20) ÷ 1,000 = $3,000/month
Subscriber equivalent: 30K-50K subscribers
Business & Entrepreneurship
Average RPM: $12-$20
Example channel:
- 200,000 monthly views
- $16 RPM
- Revenue = (200,000 × $16) ÷ 1,000 = $3,200/month
Subscriber equivalent: 40K-80K subscribers
Tech Reviews
Average RPM: $8-$15
Example channel:
- 300,000 monthly views
- $12 RPM
- Revenue = (300,000 × $12) ÷ 1,000 = $3,600/month
Subscriber equivalent: 60K-150K subscribers
Medium-Revenue Niches
Lifestyle & Fashion
Average RPM: $4-$8
Example channel:
- 400,000 monthly views
- $6 RPM
- Revenue = (400,000 × $6) ÷ 1,000 = $2,400/month
Subscriber equivalent: 80K-200K subscribers
Food & Cooking
Average RPM: $3-$7
Example channel:
- 500,000 monthly views
- $5 RPM
- Revenue = (500,000 × $5) ÷ 1,000 = $2,500/month
Subscriber equivalent: 100K-250K subscribers
Low-Revenue Niches
Gaming
Average RPM: $2-$4
Example channel:
- 1,000,000 monthly views
- $3 RPM
- Revenue = (1,000,000 × $3) ÷ 1,000 = $3,000/month
Subscriber equivalent: 200K-500K subscribers
Reality: Gaming channels need 3-5x more views to earn same as finance channels.
Entertainment & Comedy
Average RPM: $2-$5
Example channel:
- 800,000 monthly views
- $3.50 RPM
- Revenue = (800,000 × $3.50) ÷ 1,000 = $2,800/month
Subscriber equivalent: 150K-400K subscribers
Calculating Total YouTube Income (Beyond AdSense)
YouTube AdSense is often just 20-40% of total creator income.
Revenue Stream #1: YouTube AdSense
Formula: (Monthly Views × RPM) ÷ 1,000
Example: 200K views × $8 RPM = $1,600/month
Revenue Stream #2: Sponsorships
Typical rates:
- 10K-50K subs: $100-$500 per video
- 50K-100K subs: $500-$2,000 per video
- 100K-500K subs: $2,000-$10,000 per video
- 500K-1M subs: $10,000-$30,000 per video
Example calculation:
- 100K subscriber channel
- 1 sponsorship per month: $2,500
- Monthly sponsorship income: $2,500
Common rate: $10-$25 per 1,000 subscribers per sponsored video
Revenue Stream #3: Affiliate Marketing
Typical commission rates:
- Amazon Associates: 1-10%
- Software/SaaS: 20-50%
- Online courses: 30-70%
Example calculation:
- Tech review channel
- 200K monthly views
- 2% click-through to Amazon
- 4,000 clicks × 3% conversion × $50 average order × 5% commission
- Monthly affiliate income: $300
Rule of thumb: Affiliate income = 10-30% of AdSense revenue (if done well)
Revenue Stream #4: Digital Products
Examples:
- Courses: $50-$1,000+ per sale
- E-books: $10-$50 per sale
- Templates/presets: $5-$100 per sale
Example calculation:
- 50K subscriber channel
- Launch a $99 course
- 1% conversion: 500 sales
- Revenue: 500 × $99 = $49,500 (one-time launch)
- Ongoing sales: $2,000-$5,000/month
Revenue Stream #5: Channel Memberships
YouTube takes 30%, creator gets 70%
Example calculation:
- 100K subscribers
- 0.5% join memberships: 500 members
- $4.99/month per member
- Revenue: 500 × $4.99 × 0.70 = $1,746.50/month
Total Income Example
Channel stats:
- 100,000 subscribers
- 300,000 monthly views
- Tech/business niche
Income breakdown:
- AdSense: (300K × $12) ÷ 1,000 = $3,600
- Sponsorships: 1 per month = $3,000
- Affiliate marketing: 20% of AdSense = $720
- Channel memberships: 300 members = $1,048
- Digital product sales: $2,000
- Total monthly income: $10,368
Key insight: AdSense ($3,600) is only 35% of total income!
Revenue Calculation Tools & Formulas
Basic Formula (Quick Estimate)
Monthly Revenue = (Views × $0.003 to $0.01)
Example:
- 100,000 views × $0.005 = $500/month
- Range: $300-$1,000 (depending on niche)
Intermediate Formula (More Accurate)
Monthly Revenue = (Monthly Views × Niche RPM) ÷ 1,000
Example:
- 150,000 views
- Finance niche: $18 RPM
- Revenue = (150,000 × $18) ÷ 1,000 = $2,700/month
Advanced Formula (Precise)
Revenue = (Views × CPM × 0.55 × Monetized Playback Rate) ÷ 1,000
Example:
- 200,000 views
- Finance CPM: $35
- Monetized playback rate: 55%
- Revenue = (200,000 × $35 × 0.55 × 0.55) ÷ 1,000 = $2,117.50/month
Per-Video Revenue Formula
Revenue Per Video = (Video Views × RPM) ÷ 1,000
Example:
- Viral video: 500,000 views
- Tech RPM: $10
- Revenue = (500,000 × $10) ÷ 1,000 = $5,000 from ONE video
Geographic Impact on Revenue
Your audience's location dramatically affects earnings.
US-Majority Audience (60%+ US traffic)
Characteristics:
- Highest CPM/RPM
- Premium advertisers
- Strong purchasing power
Example calculation:
- 100,000 views (60% US traffic)
- Finance niche
- Effective RPM: $18-22
- Revenue: $1,800-$2,200/month
International Audience (80%+ non-US traffic)
Characteristics:
- Lower CPM/RPM
- Budget advertisers
- Limited purchasing power
Example calculation:
- 100,000 views (80% India/Philippines traffic)
- Finance niche
- Effective RPM: $2-4 (vs $18-22 for US)
- Revenue: $200-$400/month
Reality check: Same niche, same views, 5-10x difference in earnings!
Mixed Audience (Global)
Example breakdown:
- 40% US: $15 RPM
- 20% UK/Canada/Australia: $8 RPM
- 40% Rest of world: $2 RPM
Weighted RPM calculation:
Weighted RPM = (0.40 × $15) + (0.20 × $8) + (0.40 × $2)
Weighted RPM = $6 + $1.60 + $0.80 = $8.40 RPM
Revenue:
- 100,000 views × $8.40 RPM = $840/month
Seasonal Revenue Fluctuations
YouTube earnings vary significantly by season.
Q4 (October - December): HIGHEST EARNINGS
CPM increase: 30-80% higher than average
Why: Black Friday, Cyber Monday, Christmas shopping
Example:
- Normal month: 100K views × $8 RPM = $800
- December: 100K views × $13 RPM = $1,300
- Extra earnings: +$500 (62% increase)
Strategy: Upload MORE content in Q4 to maximize high-CPM period.
Q1 (January - March): LOWEST EARNINGS
CPM decrease: 30-50% lower than average
Why: Post-holiday advertising budget cuts
Example:
- Normal month: 100K views × $8 RPM = $800
- January: 100K views × $4.50 RPM = $450
- Lost earnings: -$350 (44% decrease)
Reality check: Many creators see income DROP 40-60% in January/February.
Q2 & Q3 (April - September): NORMAL EARNINGS
CPM: Baseline rates
Summer boost: June-August slightly higher (vacation spending)
Annual revenue pattern:
- Jan-Mar: 70% of average
- Apr-May: 95% of average
- Jun-Aug: 105% of average
- Sep: 100% of average
- Oct-Dec: 140% of average
How to Calculate Break-Even & Income Goals
Finding Your Break-Even Point
Monthly expenses for YouTube:
- Equipment: $50/month (amortized)
- Software subscriptions: $50/month
- Outsourcing (editor, thumbnail designer): $200/month
- Total monthly expenses: $300
Break-even calculation:
Break-even views = (Monthly Expenses × 1,000) ÷ RPM
Example (Tech niche, $8 RPM):
- Break-even views = ($300 × 1,000) ÷ $8 = 37,500 views/month
Interpretation: Need 37,500+ monthly views to cover costs.
Setting Income Goals
Goal: $2,000/month from YouTube
Formula:
Required Views = (Income Goal × 1,000) ÷ RPM
Examples by niche:
Finance ($18 RPM):
- Required views = ($2,000 × 1,000) ÷ $18 = 111,111 views/month
Tech ($10 RPM):
- Required views = ($2,000 × 1,000) ÷ $10 = 200,000 views/month
Lifestyle ($5 RPM):
- Required views = ($2,000 × 1,000) ÷ $5 = 400,000 views/month
Gaming ($3 RPM):
- Required views = ($2,000 × 1,000) ÷ $3 = 666,667 views/month
Key insight: Niche choice determines how many views you need to hit income goals!
Goal: $10,000/month (Full-Time Income)
Required views by niche:
- Finance ($18 RPM): 555,556 views/month
- Business ($14 RPM): 714,286 views/month
- Tech ($10 RPM): 1,000,000 views/month
- Lifestyle ($5 RPM): 2,000,000 views/month
- Gaming ($3 RPM): 3,333,333 views/month
Reality check: Only 1-3% of monetized channels reach $10K/month from AdSense alone.
Diversification strategy:
- AdSense: $4,000 (400K views × $10 RPM)
- Sponsorships: $3,000 (1-2 per month)
- Affiliate marketing: $1,500
- Digital products: $1,500
- Total: $10,000/month
Using Our YouTube Earnings Calculator
The easiest way to calculate your revenue? Use our free tool!
What it calculates:
- Estimated monthly revenue
- Annual revenue projection
- Revenue by niche (15+ categories)
- Revenue by geographic region
- Revenue by subscriber count
- Break-even analysis
How to use:
- Select your niche/category
- Enter monthly views (or estimated)
- Select primary audience location
- Choose video length
- Get instant revenue calculation
Advanced features:
- Compare multiple niches side-by-side
- Factor in seasonality (Q4 boost)
- Add sponsorship & affiliate income
- Set income goals & see required views
Frequently Asked Questions
Q: How accurate are YouTube revenue calculators?
A: Typically within 20-40% accuracy. Actual earnings vary based on:
- Exact audience demographics
- Video watch time/retention
- Ad type mix
- Seasonal timing
- Content advertiser-friendliness
Q: When does YouTube pay creators?
A: Monthly, around the 21st-26th, via AdSense. Must reach $100 threshold.
Q: Can I calculate revenue before monetization?
A: Yes! Use estimated RPM for your niche. Won't be exact, but gives you realistic goals.
Q: Why is my actual revenue lower than calculated?
A: Common reasons:
- Lower monetized playback rate (more ad blockers)
- Viewers skipping ads
- Content not advertiser-friendly
- Younger audience (lower CPM)
- More non-US traffic
Q: Do YouTube Shorts count toward revenue?
A: Yes, but Shorts have MUCH lower RPM ($0.05-$0.10 per 1K views vs $3-20 for regular videos).
Q: How do I increase my RPM?
A: Key strategies:
- Target US/UK audience
- Create 10-15 minute videos
- Place mid-roll ads strategically
- Improve audience retention
- Focus on advertiser-friendly topics
- Upload more in Q4 (Oct-Dec)
Conclusion: Your Revenue Roadmap
Key takeaways:
- Use RPM, not CPM - RPM is what you actually earn per 1,000 views
- Niche determines earnings - Finance ($18 RPM) vs Gaming ($3 RPM) = 6x difference
- Views matter more than subscribers - A 10K-sub channel with high views earns more than a 100K-sub channel with low views
- Video length affects revenue - 10-15 minute videos earn 40-60% more than 5-minute videos
- Geography is crucial - US traffic earns 5-10x more than developing country traffic
- Diversify income - AdSense is often only 30-40% of total creator income
- Seasonality is real - Earn 40-80% more in Q4, 30-50% less in Q1
Action steps:
✅ Calculate current revenue: Use formula (Views × RPM) ÷ 1,000 ✅ Set income goals: Decide monthly target ($500, $2K, $10K) ✅ Calculate required views: (Goal × 1,000) ÷ RPM ✅ Optimize for higher RPM: Longer videos, US audience, high-CPM topics ✅ Add revenue streams: Sponsorships, affiliates, products ✅ Track monthly: Monitor RPM trends in YouTube Analytics
Ready to calculate your potential YouTube revenue?
Use our free YouTube Earnings Calculator for instant, personalized estimates based on your niche, audience, and goals!
Related Tools:
- YouTube Earnings Calculator - Instant revenue estimates
- RPM/CPM Calculator - Analyze your actual earnings
- Niche Profitability Calculator - Find highest-paying niches
- Monetization Tracker - Track progress to YPP requirements