One of the most common questions from beginners: "How much should I spend on Google Ads?" The answer depends on your industry, goals, and competition. This guide gives you a clear framework for setting your Google Ads budget correctly in 2026.
Understanding Google Ads Budget Basics
Google Ads uses a daily budget model. You set the maximum you are willing to spend per day, and Google tries to spend that amount evenly while maximizing results. Google may sometimes spend up to 2x your daily budget on high-traffic days but will never exceed your monthly limit (daily budget × 30.4).
How to Calculate Your Starting Budget
Follow this 4-step formula:
- Target monthly leads/sales: e.g., 20 new clients per month
- Expected conversion rate: e.g., 5% of clicks become clients
- Required clicks: 20 ÷ 5% = 400 clicks needed
- Estimated CPC: e.g., $2 per click
- Monthly budget: 400 × $2 = $800/month = ~$26/day
Recommended Starting Budgets by Industry
- E-commerce / Retail: $20-50/day
- Restaurants / Local services: $15-30/day
- Real estate: $50-150/day
- Legal / Financial services: $50-200/day
- Healthcare / Medical: $30-80/day
- Education / Training: $20-60/day
Budget Distribution Strategy
Do not put all your budget in one campaign type:
- 70% — Primary campaign (Search or Shopping)
- 20% — Remarketing (recapture lost visitors)
- 10% — Testing new keywords or ad types
How to Reduce Wasted Budget
- Add negative keywords from day one
- Use exact and phrase match keywords (not broad match)
- Enable ad scheduling — run ads only when customers are active
- Set location targeting precisely
- Pause low-performing keywords and ads weekly
When to Increase Your Budget
Increase budget when:
- ROAS is above 300% consistently
- Cost per conversion is below your target
- You are losing impression share due to budget limits
Manage Your Budget Smarter With AI
Furriyadh AI automatically manages your Google Ads budget — allocating spend to the highest-performing campaigns, pausing waste, and scaling winners. Start with any budget and let AI maximize your results. See pricing plans.
For full pricing information, read: Google Ads Pricing 2026 — Complete Cost Guide
