What is the $500 threshold in Google Ads?

The $500 threshold in Google Ads refers to a billing trigger where your account is automatically charged once your spend reaches $500. It’s part of Google’s monthly invoicing or threshold-based billing system, helping advertisers manage payment frequency and avoid service disruption.

You can read more about how Google Ads billing works here.

 

How does the Google Ads threshold system work?

Google Ads uses a threshold-based billing system for automatic payments. Initially, new accounts are charged when they reach a low threshold (e.g., $50), and this increases as you continue to spend and make successful payments.

Over time, common thresholds include:

• $50
• $200
• $350
• $500

Once you hit a threshold, Google charges your primary payment method. You may also be charged on a specific monthly billing date, whichever comes first.

Why is my threshold set at $500?

Google sets the $500 threshold as the maximum tier in most standard accounts. It means your account has passed earlier billing milestones (like $50, $200, etc.) and is now on the highest auto-payment tier.

This helps reduce how often you’re billed, which is helpful for higher-spending advertisers.

 

Can I change the $500 threshold amount?

No, advertisers can’t manually set or lower the threshold. It increases automatically based on your account’s billing history and consistent, successful payments.

However, if you need more control, you can:

Switch to monthly invoicing (for eligible advertisers)

Make manual payments to avoid hitting the threshold at inopportune times

 

What happens when I hit the $500 threshold?

Once your account hits $500 in ad spend:

• Google automatically charges your primary payment method
• You’ll see a transaction appear in your billing summary
• Your ad campaigns continue running without interruption (unless the payment fails)

It’s important to ensure your payment method is valid to avoid service disruptions.

 

How to manage billing thresholds effectively?

Here are a few tips:

• Monitor your spend using the billing tab in your Google Ads account
• Set email alerts for billing activity
• Keep backup payment methods on file
• Review your Google Ads billing settings regularly

For advanced setups, consider monthly invoicing if you meet Google’s eligibility requirements (usually $5,000+ monthly spend).

 

Conclusion: Key takeaways about the $500 threshold

• The $500 threshold is the highest auto-billing tier for most advertisers
• It helps reduce billing frequency once your account shows good payment history
• You can’t manually set the threshold, but you can manage spend with manual payments or invoicing
• Always ensure your payment methods are current to avoid campaign pauses