How Billing Works with Facebook Ads

This article goes over the differences between budgets, spending limits, and your billing threshold.

In this article

We will go over the difference between budgets, spending limits, and billing threshold for Facebook Ads. These three help you control how much you spend on your ads.

• Budgets
• Spending Limits
• Billing Threshold

Budgets

• A budget is the amount of money you set aside to pay for advertisements from your ad set shown over the period you set for it to run. You set a budget for each ad set you create. 
• There are two kinds of budgets you can set:
  • Daily Budget: the average amount you are willing to spend on an ad set every day
    

• • Lifetime Budget: The amount you are willing to spend over the duration of an ad set
• Learn more about setting budgets for your ads.

Spending Limits

• Spending limits ensure that you do not spend more on your advertisements than you want to.
• The two spending limits include:
  • Campaign spending limit: the maximum amount you are willing to spend on an advertising campaign.
     
    • It does not affect your ad's delivery, but it ensures that all the ad sets and ads in the campaign stop running once your campaign spends the campaign spending limit that you have set.
    • Learn how to set, edit or remove a campaign spending limit
  • Account spending limit: a lifetime limit on the amount your ad account can spend across all campaigns you are running.
     
    • The account spending limit should reflect your overall advertising budget to achieve the best results possible.
    • Learn the basics of what an account spending limit is, how it works and what to do if you reached yours.

Billing Threshold

• A billing threshold is an amount that controls when you will receive a bill for your ads based on how much you spend. 
  
  The billing threshold here is $900.
  • As you run ads, you will accumulate ad costs, and Facebook will automatically charge your account as you reach the billing threshold. 
  • The amount your billing threshold starts at is based on the country and currency of your ad account and the payment method you use to pay for the ads.
    • Generally, this number starts out low and increases as you spend more on Facebook Ads.
  • If you reach your billing threshold in a month, you will receive a bill. 
    • If you run ads after you reach the billing threshold, you will receive a second bill on your bill date.

Last Updated: Jan 27, 2020 11:13 AM

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