diff --git a/js/src/components/paid-ads/validateCampaign.js b/js/src/components/paid-ads/validateCampaign.js
index a39222f296..b8c4f011a5 100644
--- a/js/src/components/paid-ads/validateCampaign.js
+++ b/js/src/components/paid-ads/validateCampaign.js
@@ -11,6 +11,7 @@ import { __, sprintf } from '@wordpress/i18n';
  * @typedef {Object} ValidateCampaignOptions
  * @property {number | undefined} dailyBudget Daily budget for the campaign.
  * @property {Function} formatAmount A function to format the budget amount according to the currency settings.
+ * @property {number} precision Number of decimal for the amount.
  */
 
 // Minimum percentage of the recommended daily budget.
@@ -33,11 +34,11 @@ const validateCampaign = ( values, opts ) => {
 		const { amount } = values;
 		const { dailyBudget, formatAmount, precision } = opts;
 
-		const minAmount = parseFloat(
-			( dailyBudget * BUDGET_MIN_PERCENT ).toFixed( precision )
+		const minAmount = ( dailyBudget * BUDGET_MIN_PERCENT ).toFixed(
+			precision
 		);
 
-		if ( amount < minAmount ) {
+		if ( amount < parseFloat( minAmount ) ) {
 			return {
 				amount: sprintf(
 					/* translators: %1$s: minimum daily budget */
diff --git a/js/src/components/paid-ads/validateCampaign.test.js b/js/src/components/paid-ads/validateCampaign.test.js
index a9ca4edb24..103543ff42 100644
--- a/js/src/components/paid-ads/validateCampaign.test.js
+++ b/js/src/components/paid-ads/validateCampaign.test.js
@@ -12,6 +12,7 @@ describe( 'validateCampaign', () => {
 	const validateCampaignOptions = {
 		dailyBudget: undefined,
 		formatAmount: jest.mock(),
+		precision: 0,
 	};
 
 	beforeEach( () => {
@@ -87,6 +88,7 @@ describe( 'validateCampaign', () => {
 		const opts = {
 			dailyBudget: 100,
 			formatAmount: mockFormatAmount,
+			precision: 0,
 		};
 
 		const errors = validateCampaign( values, opts );
@@ -120,4 +122,21 @@ describe( 'validateCampaign', () => {
 		const errors = validateCampaign( values, opts );
 		expect( errors ).not.toHaveProperty( 'amount' );
 	} );
+
+	it( 'When precision is set, the correct amount should be displayed', () => {
+		const mockFormatAmount = jest
+			.fn()
+			.mockImplementation( ( amount ) => `Rs ${ amount }` );
+
+		values.amount = 10;
+
+		const opts = {
+			dailyBudget: 100,
+			formatAmount: mockFormatAmount,
+			precision: 2,
+		};
+
+		const errors = validateCampaign( values, opts );
+		expect( errors.amount ).toContain( 'is at least Rs 30.00' );
+	} );
 } );