What Is Net Cost in Google Ads?

Net Cost refers to the actual amount you’re charged for running ads after applying any adjustments such as discounts, credits, or promotional codes. It’s what you really pay—not just what your campaign spent.

Key Points:

• Formula:
  Net Cost = Gross Cost – Credits – Discounts – Refunds

• Appears in Billing Reports – Helps advertisers understand true financial impact.

• Excludes Taxes – In some countries, taxes may be listed separately from the net cost.

Example:

If your Google Ads campaign spent $500, but you had a $100 promotional credit, your Net Cost would be $400.

Why It Matters?

• It gives you a realistic view of what you’re actually paying.

• Useful for budget planning, ROI calculation, and reconciling invoices.

Pro Tip:

Regularly check your “Transactions” tab in your Google Ads account to track net costs and any applied credits.