Figuring out how much Facebook ads cost per month is one of the first questions businesses ask when considering Meta advertising. The short answer: most businesses spend between $500 and $5,000 monthly, but your ideal budget depends on your goals, industry, and business stage.
In this guide, we'll break down exactly what you should expect to pay for Facebook advertising in 2026, with specific recommendations based on business size and objectives.
Facebook doesn't require a set monthly minimum—you can technically start with just $1-5 per day. However, spending too little means your campaigns won't gather enough data to optimize properly.
Here's what businesses actually spend based on 2026 industry data:
| Business Stage | Monthly Ad Spend | What You Can Expect |
|---|---|---|
| Testing phase | $750 - $1,500 | Limited reach, initial learning |
| Growth phase | $2,000 - $4,000 | Consistent reach and optimization |
| Competitive scale | $5,000+ | Market-level visibility |
To understand monthly costs, you need to know the key metrics that determine your spend:
With a $1,000 monthly budget at average CPC rates, you'd receive approximately 1,600 clicks. At a 2% conversion rate, that translates to roughly 32 leads per month.
Your company's size and growth stage should influence your monthly Facebook ad investment. Here's what we recommend:
Small businesses just starting with Facebook ads should budget $500 to $1,000 per month for basic campaign testing. This budget allows you to:
Is $1,000 enough for Facebook ads? Yes, but with realistic expectations. According to industry research, you should plan to spend at least $1,000-2,000 for initial testing across 30 days to generate meaningful data. This provides enough information to evaluate which audiences and creatives perform best.
Established businesses typically invest $2,000 to $5,000 monthly in Facebook advertising. This budget enables:
Large companies with significant marketing budgets allocate $10,000 or more per month to Facebook ads. At this level, you can:
Your industry significantly impacts Facebook ad costs. Some sectors face more competition, driving up costs per click and impression.
| Industry | Recommended Monthly Budget | Expected CPM |
|---|---|---|
| Finance & Insurance | $3,000 - $10,000 | $15 - $20 |
| Legal Services | $2,500 - $8,000 | $14 - $18 |
| Real Estate | $2,000 - $6,000 | $12 - $16 |
| Healthcare | $1,500 - $5,000 | $10 - $14 |
| E-commerce | $1,000 - $4,000 | $7 - $10 |
| Food & Beverage | $500 - $2,000 | $4 - $7 |
| Entertainment | $500 - $2,000 | $4 - $6 |
Competitive industries like finance and legal require higher budgets to achieve meaningful results. E-commerce and entertainment businesses often see lower costs per impression, making smaller budgets more effective.
Follow this step-by-step approach to determine the right budget for your business:
Your objective determines how much you'll spend. Brand awareness campaigns typically cost less than conversion-focused campaigns:
| Objective | Average CPM |
|---|---|
| Reach | $5 - $7 |
| Brand Awareness | $5 - $8 |
| Engagement | $4 - $6 |
| Traffic | $6 - $9 |
| Lead Generation | $9 - $13 |
| Conversions | $10 - $15 |
Work backward from your target customer acquisition cost (CAC):
Example: If your target CPA is $50 and you want 50 conversions monthly, you need a minimum budget of $2,500/month.
Facebook ads require time to optimize. The biggest mistake businesses make is spending their entire budget in one month and then quitting.
Instead, plan for at least 6 months of consistent spend. If you have $5,000 to invest:
This approach allows time to test audiences, creatives, and offers while building valuable retargeting pools.
Allocate your monthly budget across the customer journey:
| Funnel Stage | Budget Allocation | Purpose |
|---|---|---|
| Awareness (TOFU) | 40-50% | Reach new audiences, build brand recognition |
| Consideration (MOFU) | 30-35% | Retargeting website visitors, engagement |
| Conversion (BOFU) | 20-25% | Retargeting warm leads, driving sales |
For example, with a $2,000 monthly budget:
Letting Meta optimize placement across Facebook, Instagram, Stories, and Audience Network typically delivers the lowest overall CPM.
Retargeting ads are cheaper and convert better because you're reaching people who already know your brand. You can see sales traction with just $500-1,000 monthly when focused on retargeting existing website visitors.
Meta rewards relevant ads with lower costs. Focus on:
Video ads typically achieve better engagement and lower CPMs. Even simple product demos or customer testimonials can outperform static images.
Small businesses should budget between $500 and $1,000 per month minimum to run effective Facebook ad campaigns. However, campaigns under $1,000 per month often struggle to generate meaningful data for optimization. If possible, aim for $1,500-2,000 monthly for better results.
$100 monthly (roughly $3.30/day) is too low for most business objectives. While Meta allows budgets this small, you won't gather enough data to optimize campaigns effectively. Most experts recommend at least $500/month as a starting point for meaningful testing.
The average CPM (cost per 1,000 impressions) on Facebook is $11.62 in 2026. However, this varies significantly by industry—from $4-6 for entertainment to $15-20 for finance.
Meta allows daily budgets as low as $1-5 depending on your campaign objective. However, for practical results, most advertisers recommend starting with at least $20-50 per day, which translates to $600-1,500 per month.
Plan for at least 6 months of consistent spend to properly test, optimize, and scale your campaigns. During this time, you're testing audiences, creatives, offers, and building retargeting pools—all essential for long-term success.
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