Google Adwords new monthly billing changes

This kind of gives you better control than before. But its also something to be noted if you are someone using credit card or debit account, so you don't incur overdraft fees.


While campaign spend may peak at 20% above your daily budget on any given day, if your daily budget is the same value throughout a month, we will use it to calculate a monthly charging limit.

To calculate your monthly charging limit, Google multiplies your daily budget by 30.4, which is roughly the average number of days in a month (365 days in a year / 12 months = 30.417 days/month). For example, if your daily budget is US$10 throughout a month, you won't be charged more than $304 (US$10 daily budget * 30.4 average days per month) during that month.

If your budget is the same value throughout a month, and you accrue more costs in a calendar month than your monthly limit allows, you'll only be charged your monthly limit. For instance, if your daily budget is US$10 per day throughout a month (a US$304 monthly charging limit), and you've accrued $310 in costs over a calendar month, you'll only be charged $304.

Whether the month is February or December, we will always multiply your daily budget by 30.4 to calculate your monthly charging limit. This can be useful if you want to avoid being charged more than a certain amount each month. For example, if you want a campaign to be charged no more than $190 each calendar month, you can set a daily budget of $6.25; you won't exceed $190 a month and won't have to change or manage your budget (as US$6.25 daily budget * 30.4 average days per month = $190 monthly charging limit).

If your daily budget changes over a month, no monthly charging limit will be calculated for that month (but the 20% daily limit will still apply)