Should we use useCallback in every function handler in React Function Components

The short answer is because arrow function is recreated every time, which will hurt the performance.

This is a common misconception. The arrow function is recreated every time either way (although with useCallback subsequent ones may be thrown away immediately). What useCallback does is make it possible for the child component you use the callback on to not re-render if it's memoized.

Let's look at the misconception first. Consider the useCallback call:

const increment = useCallback(() => setCounter(counter => counter + 1), []);

That's executed like this:

Evaluate the first argument, () => setCounter(counter => counter + 1), creating a function
Evaluate the second argument, [], creating an array
Call useCallback with those two arguments, get back a function

Compare with what you have if you don't use useCallback:

const increment = () => setCounter(counter => counter + 1);

That's much simpler: Create the function. It doesn't then have to do #2 and #3 above.

Let's move on to what useCallback actually does that's useful. Let's look at where the callback is used:

<Button onClick={increment} />

Now, suppose Button is memoized with React.memo or similar. If increment changes every time your component renders, then Button has to re-render every time your component changes; it can't be reused between renders. But if increment is stable between renders (because you used useCallback with an empty array), the memoized result of calling Button can be reused, it doesn't have to be called again.

Here's an example:

const { useState, useCallback } = React;

const Button = React.memo(function Button({onClick, children}) {
    console.log("Button called");
    return <button onClick={onClick}>{children}</button>;
});

function ComponentA() {
    console.log("ComponentA called");
    const [count, setCount] = useState(0);
    // Note: Safe to use the closed-over `count` here if `count `updates are
    // triggered by clicks or similar events that definitely render, since
    // the `count` that `increment` closes over won't be stale.
    const increment = () => setCount(count + 1);
    return (
        <div>
            {count}
            <Button onClick={increment}>+</Button>
        </div>
    );
}

function ComponentB() {
    console.log("ComponentB called");
    const [count, setCount] = useState(0);
    // Note: Can't use `count` in `increment`, need the callback form because
    // the `count` the first `increment` closes over *will* be slate after
    // the next render
    const increment = useCallback(
        () => setCount(count => count + 1),
        []
    );
    return (
        <div>
            {count}
            <Button onClick={increment}>+</Button>
        </div>
    );
}

ReactDOM.render(
    <div>
        A:
        <ComponentA />
        B:
        <ComponentB />
    </div>,
    document.getElementById("root")
);

<div id="root"></div>

<script src="https://cdnjs.cloudflare.com/ajax/libs/react/16.13.0/umd/react.production.min.js"></script>
<script src="https://cdnjs.cloudflare.com/ajax/libs/react-dom/16.13.0/umd/react-dom.production.min.js"></script>

Note that clicking the button in ComponentA always calls Button again, but clicking the button in ComponentB doesn't.

When do you want to do that? That's largely up to you, but it probably makes sense when your component's state will change frequently in ways that don't affect the contents of increment and thus don't affect Button and if Button has to do significant work when rendered. Button probably doesn't, but other child components may.

For instance, the useCallback in my previous example is probably pointless if you use count as the text of the button, since that means Button has to re-render regardless:

const { useState, useCallback } = React;

const Button = React.memo(function Button({onClick, children}) {
    console.log("Button called");
    return <button onClick={onClick}>{children}</button>;
});

function ComponentA() {
    console.log("ComponentA called");
    const [count, setCount] = useState(0);
    // Note: Safe to use the closed-over `count` here if `count `updates are
    // triggered by clicks or similar events that definitely render, since
    // the `count` that `increment` closes over won't be stale.
    const increment = () => setCount(count + 1);
    return (
        <div>
            <Button onClick={increment}>{count}</Button>
        </div>
    );
}

function ComponentB() {
    console.log("ComponentB called");
    const [count, setCount] = useState(0);
    // Note: Can't use `count` in `increment`, need the callback form because
    // the `count` the first `increment` closes over *will* be slate after
    // the next render
    const increment = useCallback(
        () => setCount(count => count + 1),
        []
    );
    return (
        <div>
            <Button onClick={increment}>{count}</Button>
        </div>
    );
}

ReactDOM.render(
    <div>
        A:
        <ComponentA />
        B:
        <ComponentB />
    </div>,
    document.getElementById("root")
);

<div id="root"></div>

<script src="https://cdnjs.cloudflare.com/ajax/libs/react/16.13.0/umd/react.production.min.js"></script>
<script src="https://cdnjs.cloudflare.com/ajax/libs/react-dom/16.13.0/umd/react-dom.production.min.js"></script>

Also note that useCallback isn't free, it impacts the code in the callback. Look at the code in the callbacks in ComponentA and ComponentB in the examples. ComponentA (which doesn't use useCallback) can use the value of count that it closes over (within limits!), () => setCount(count + 1). But the one in ComponentB always has to use the callback form of the setter, () => setCount(count => count + 1). That's because if you keep using the first increment you create, the count it closes over will be stale — you'd see the count go to 1, but never further.

A final note: If you're re-rendering a component so often that creating and throwing away the various functions you're passing to useCallback or useMemo may be causing too much memory churn (a rare situation), you can avoid it by using a ref. Let's look at updating ComponentB to using a ref instead of useCallback:

const incrementRef = useRef(null);
if (!incrementRef.current /* || yourDependenciesForItChange*/) {
    // Note: Can't use `count` in `increment`, need the callback form because
    // the `count` the first `increment` closes over *will* be slate after
    // the next render
    incrementRef.current = () => setCount(count => count + 1);
}
const increment = incrementRef.current;

That only creates the increment function once (in that example, since we don't have any dependencies), it doesn't create and throw away functions like using useCallback does. It works because the initial value of the ref is null, and then the first time the component function is called, we see that it's null, create the function, and put it on the ref. So increment is only created once.

That example does recreate the function we pass setCount every time increment is called. It's possible to avoid that, too:

const incrementRef = useRef(null);
if (!incrementRef.current) {
    // Note: Can't use `count` in `increment`, need the callback form because
    // the `count` the first `increment` closes over *will* be slate after
    // the next render
    const incrementCallback = count => count + 1;
    incrementRef.current = () => setCount(incrementCallback);
}
const increment = incrementRef.current;

const { useState, useRef } = React;

const Button = React.memo(function Button({onClick, children}) {
    console.log("Button called");
    return <button onClick={onClick}>{children}</button>;
});

function ComponentA() {
    console.log("ComponentA called");
    const [count, setCount] = useState(0);
    // Note: Safe to use the closed-over `count` here if `count `updates are
    // triggered by clicks or similar events that definitely render, since
    // the `count` that `increment` closes over won't be stale.
    const increment = () => setCount(count + 1);
    return (
        <div>
            {count}
            <Button onClick={increment}>+</Button>
        </div>
    );
}

function ComponentB() {
    console.log("ComponentB called");
    const [count, setCount] = useState(0);
    const incrementRef = useRef(null);
    if (!incrementRef.current) {
        // Note: Can't use `count` in `increment`, need the callback form because
        // the `count` the first `increment` closes over *will* be slate after
        // the next render
        const incrementCallback = count => count + 1;
        incrementRef.current = () => setCount(incrementCallback);
    }
    const increment = incrementRef.current;
    return (
        <div>
            {count}
            <Button onClick={increment}>+</Button>
        </div>
    );
}

ReactDOM.render(
    <div>
        A:
        <ComponentA />
        B:
        <ComponentB />
    </div>,
    document.getElementById("root")
);

<div id="root"></div>

<script src="https://cdnjs.cloudflare.com/ajax/libs/react/16.13.0/umd/react.production.min.js"></script>
<script src="https://cdnjs.cloudflare.com/ajax/libs/react-dom/16.13.0/umd/react-dom.production.min.js"></script>

That's really going to 11 in terms of avoiding unnecessary function creation. :-)

It's a rare component that needs even that first level of optimization, much less the second level; but when/if you do, that's how you do it.

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