After you're approved for monthly invoicing, you’ll be assigned a credit line. This credit line allows you to manage your campaign costs effectively over a billing cycle. To learn more about applying for a line of credit, visit the apply for monthly invoicing article to review the eligibility criteria, the required documents, and the application process. After you have a credit line, you can use this amount to calculate the maximum amount you can use as your average daily budget. This is a good way to distribute your campaign costs over a certain time period. Here's how you'd use one:
How to calculate your monthly spending limit
Example
Let's say you have a Google Ads account with 2 campaigns, and you want to spend a total of $10,000 USD for the 30-day month. To make sure this $10,000 USD lasts the entire month, first decide how much you want to spend on each campaign. Suppose you want to dedicate $7500 USD to campaign #1 and $2500 USD to campaign #2. To find your average daily budget, divide each amount by 30:
Following this formula, you'll assign campaign #1 an average daily budget of $250 and campaign #2 an average daily budget of $83.33.
Keep in mind: If you'd like to spend $10,000 USD per month and you have 30 days to pay your bill, your credit line has to be at least $20,000 USD. This is because after the first month, you'll have used $10,000 USD of your credit line. So, by the time you'll have paid the bill, (that is, after 30 days), you'll have spent an additional $10,000 USD with Google for that second month. That's why your credit line has to be at least $20,000 USD.
Your campaign daily costs might go slightly over or under your average daily budget, but you won't pay more than your campaign's monthly spending limit, which is your average daily budget times the average number of days in a month (30.4). Learn more about Charges and your average daily budget.
When setting your campaign budgets, keep in mind that your credit line will need to cover all your account costs, including:
- The costs being collected in your account(s) each day for which you haven't been billed
- The costs for which you've been invoiced but haven't yet paid
- The costs collected in your account while your previous month's payment is processed (a minimum of several days)
If you don't spend your average daily budget each day, your monthly costs could be lower than you expect. That's why it's a good idea to check your costs regularly, in case you'd like to raise your bid.
You can view your collected costs on the Campaigns page. Be sure to set the date range for an appropriate period, then find the collected costs for each campaign in the last column of the table.
