
Quick answer
You decide how much to spend on Facebook and Instagram ads, from a few dollars a day. What each lead or sale costs depends on your audience, campaign objective, ad quality and the season, because Meta sells ad space in an auction. GST may be added unless you give Meta a GST-registered ABN.
This guide is part of our Meta ads help centre. It explains how Meta charges, then shows you how to work out what a lead is likely to cost your business before you commit a large budget.
How Meta charges for ads
Every time someone opens Facebook or Instagram, Meta runs an auction to decide which ads to show them. Your bid is only part of it. Meta also weighs how likely that person is to take the action you asked for and how relevant it judges your ad to be. A bigger bid does not guarantee you win.
- Your budget is a ceiling, not a price. You set a daily or lifetime budget for a campaign or ad set. Meta tries to spend it on the best results it can find.
- You are usually charged for impressions. Most campaigns are billed on impressions, reported as CPM (cost per 1,000 impressions), even when you optimise for leads or sales. Ads Manager then divides spend by results to show your cost per result.
- Billing timing depends on your account. Meta charges your payment method as spend builds up or on a monthly bill date, depending on the account and payment type. Check Billing and payments in Ads Manager to see how yours works.
What makes your cost go up or down
| What you see | What it means | How to fix it | How long it takes |
|---|---|---|---|
| High CPM | Lots of advertisers want the same people, or your audience is very small | Widen the location or age range, or test Advantage+ audience; avoid launching in peak retail weeks | 1 to 2 weeks to see the new level |
| Cheap clicks but no enquiries | The ad attracts curiosity, then the landing page or form loses people | Make the page match the ad's promise, shorten the form and check tracking | A few days after the change |
| Cost per lead creeping up each week | Ad fatigue: the same people have seen the same ad many times | Check the Frequency column and add fresh creative every few weeks | About a week per new ad |
| Learning limited | Too few optimisation events for Meta's system to learn from | Merge ad sets, raise the budget, or optimise for a more frequent event | 1 to 2 weeks |
| Costs jump in late November | Seasonal competition from retailers | Plan budget and creative earlier, and judge on qualified leads | Until the season ends |
How to estimate your cost before you spend
We are not going to quote you a national average. Most published benchmarks are US data in US dollars, and they lump together industries that have little in common with yours. Your own numbers matter more, and you can estimate them in under an hour.
- Work out what an enquiry is worth. If one in five enquiries becomes a job, and a job earns you $1,000 gross profit, each enquiry is worth up to $200. Decide how much of that you are willing to spend.
- Build a draft campaign in Ads Manager. Use your real location, age range and objective. The panel on the right shows an estimated audience size and estimated daily results for your budget. Treat these as Meta's estimates, not promises.
- Run a small, clean test. One campaign, one ad set and two or three ads, for two to four weeks.
- Divide spend by qualified leads, not all leads. Spam, wrong-area and price-shopping enquiries count against the ad.
Tip
Put cost per qualified lead next to the enquiry value from step 1. That one comparison tells you whether to scale, fix or stop.
Worked example in AUD
These are example numbers to show the maths, not benchmarks. Say a Brisbane bathroom renovator spends $30 a day for 28 days, which is $840 of ad spend. Ads Manager reports 21 leads, so the cost per lead is $40. After calling everyone back, 12 are genuine, in-area enquiries. The cost per qualified lead is $70.
If one in four qualified leads becomes a job worth $4,000 gross profit, each qualified lead is worth about $1,000. Paying $70 for it is an easy decision. If only one in 20 converted and jobs earned $500, each lead would be worth $25, and the same campaign would be losing money.
Starting budgets and the learning phase
After you launch an ad set, or make a significant edit, Meta's delivery system goes through a learning phase while it works out who responds. Meta's help centre says an ad set generally needs around 50 optimisation events within a week to leave learning. If your budget cannot buy that many results, the ad set shows Learning limited and results tend to be less stable.
That makes the maths simple. At $40 a lead, 50 leads a week is $2,000 a week for one ad set. Most small businesses don't spend that, and that's fine. It just means you should:
- run one or two ad sets instead of splitting a small budget five ways;
- give a test at least two weeks before judging it;
- avoid editing every day, because significant edits can restart learning.
Is $10 a day enough? It is enough to see whether a local audience responds to your offer at all. It is rarely enough to get a lead campaign out of learning.
Boosting a post vs Ads Manager
A boosted post enters the same auction as an Ads Manager campaign, so it is not cheaper per impression. The difference is control. Boosting gives you fewer objective, placement and audience options, and it is easy to end up paying for likes and reach that never become enquiries. Our guide to boosting a post vs Ads Manager explains when each one makes sense.
Why costs change through the year
Because competition sets the price, your costs move when other advertisers spend more. In Australia the busy windows are usually end of financial year in June, Black Friday and Cyber Monday in late November, and the run-up to Christmas. Big retailers push large budgets at the same people you want to reach.
If you sell services rather than gifts, you may get better value by spending a little more in quieter months and pulling back in the last fortnight of November.
GST, ABN and your Meta invoice
Meta's tax help page says it adds GST at the local rate when the Meta company selling the ads is outside Australia, your billing address is in Australia, and you are not GST-registered or are not buying for business. If you are GST-registered and buying for business, adding your ABN to the ad account's payment settings should stop Meta adding GST. Meta notes an exception: where Facebook Australia is the seller, GST is added either way.
- Enter your business name and ABN exactly as they appear on the Australian Business Register.
- Set the country to Australia and the currency to AUD when you create the ad account. The currency and time zone are set at creation, and changing them usually means opening a new ad account.
- Download invoices from Billing and payments each month for your bookkeeper.
This is general information, not tax advice. Ask your accountant how to treat Meta charges on your BAS.
Are Facebook ads cheaper than Google Ads?
Per click, Meta is often cheaper. That is the wrong comparison. Google Ads reaches people who are searching for your service right now. Meta reaches people who fit a profile but weren't looking. Meta leads tend to be cheaper and colder, so they need faster follow-up.
Compare cost per qualified lead, or cost per sale, on both platforms over the same period. Our guide to what Google Ads cost in Australia uses the same method for search. If your Meta ads get clicks but nothing else, start with Facebook ads getting clicks but no sales.
When to get help
If a test has run for a month and you still can't say what a qualified lead costs, a specialist checks tracking, lead quality, audience and offer before touching the budget. We manage Meta campaigns month to month with no lock-in, you own the ad account, and our management fee is quoted in writing, separate from your ad spend.
About this guide
Written by Amann Jhamb, Director of AR Digital Solutions, 17 years in web design, SEO and paid ads. Last checked: 3 November 2026 against Meta Business Help Centre: Taxes on Meta ads placement. Change note: first published 3 November 2026. Part of our Meta ads help centre.