About spending limits

For most campaigns, given your average daily budget, you will never pay more than:
  • Your daily spending limit (two times your average daily budget for most campaigns) on any particular day.
  • Your monthly spending limit (30.4 times your average daily budget for most campaigns) in any particular month.

Daily spending limit

The daily spending limit is the maximum amount you can be billed for a campaign on a given day.

For most campaigns, the daily spending limit is your average daily budget multiplied by 2. On a given day, your campaign might spend up to twice your average daily budget to take advantage of fluctuations of traffic. At the end of month the amount you will have spent on average every day will match your average daily budget.

For instance, if your average daily budget is set to $10, your daily spending limit is going to be $10*2 = $20.

Note: Making changes to your average daily budget will impact your daily spending limit. Learn more about how budget changes take effect

Check the daily spending limit for different campaign types

Campaign type Daily spending limit Daily spending limit for an average daily budget of $10 USD
All Others 2 * average daily budget 2*10 = $20 USD
Pay For Conversions 30.4 * average daily budget 30.4 * 10 = $304 USD
Hotel Commission Campaigns 30.4 * average daily budget 30.4 * 10 = $304 USD

Monthly spending limit

The monthly spending limit is the maximum amount you can pay for a campaign over a month.

You can calculate it by multiplying the average daily budget you set, by the average number of days in a month, which is 30.4 (365 days in a year ÷ 12 months). If your campaign starts during a calendar month, we will only take into account the days the campaign was running.

For instance, if your average daily budget is set to $10, your monthly spending limit is going to be $10*30.4 = $304.

Note: Making changes to your average daily budget will impact your monthly spending limit. Learn more about how budget changes take effect

What happens when served costs exceed daily or monthly spending limits

In rare circumstances, your “served costs” may exceed your spending limits. But don’t worry, you’ll never actually pay more than your spending limits. To understand how this works, you’ll need to understand the difference between served costs and billed costs.

  • Served cost is the cost of all the clicks or impressions that the campaign received.
  • Billed cost is the actual amount you're responsible for paying after adjustments have been made to your account for items like invalid activity.

While served costs might exceed daily or monthly spending limits, you will never pay more than these two limits. When such a situation occurs, Google will cover the difference. Learn more about how to view daily costs at the campaign and account level

Example: Exceeding daily spending limit

Assume an advertiser has a campaign with the following:

  • Average daily budget =$10 USD
  • Daily spending limit =$10 USD * 2 =$20 USD

Now assume that, on a particular day when consumer demand is very high, the campaign receives total clicks that cost $23 USD, which is more than the $20 USD daily spending limit for this campaign. Even though our systems are designed to stop showing ads once the $20 USD daily spending limit hits, it is possible in rare circumstances that our systems don’t detect discrepancies right away.

This is not how much you pay. Your billed cost, the amount you’re responsible for paying, will never exceed your spending limits. Therefore, in this case your billed cost is going to be the daily spending limit, $20 USD, and Google will cover the remaining $3 USD.

Example: Exceeding monthly spending limit

Assume an advertiser has a campaign with the following:

  • Average daily budget = $10 USD
  • Monthly Spending Limit = $10 USD * 30.4 = $304 USD

Now assume that, on a particular month when consumer demand is very high, the campaign receives total clicks that cost $310 USD, which is more than the $304 monthly spending limit for this campaign. Even though our systems are designed to stop showing ads once the $310 monthly spending limit hits, it is possible in rare circumstances that our systems don’t detect discrepancies right away.

$310 USD is the served cost for the campaign - the cost of all the clicks or impressions that the campaign received.

This is not how much you pay. Your billed cost, the amount you’re responsible for paying, will never exceed your spending limits. Therefore, in this case your billed cost is going to be the monthly spending limit, $304, USD and Google will cover the remaining $6 USD.

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