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# How Revenue is calculated in Budget?


# Revenue

This represents the total income generated from the project associated with the budget. 
It helps track whether the project is meeting financial goals. It’s calculated based on billable hours, fixed charges, budget, expenses and invested time inthe project. Monitoring revenue alongside costs ensures the project stays profitable and aligns with the expected margins.

###### ![](https://storage.crisp.chat/users/helpdesk/website/f3e4eb6758a66800/image_98dxhx.png)

### - Mathematical Calculation of Revenue

* **Case - Budget Revenue (For fixed cost)**

Example:
Budget = 100000
Profit Margin = 30%
Target Profit = 30000
Target Budget = 70000

Invested time = billable activity logs by default. If user selected non-billable as well from the filters, then add non-billable as well.

Revenue = Budget - (Expenses + Invested Time (billable))
Revenue = 100000 - (2000 + 80000 hours cost) = 18000
Revenue = 100000 - (2000 + 90000 hours cost) = 0

Total margin is average margin.
Total Expenses is sum of all Expenses

Filters
- with or without Expenses.
- with or without billable

* **Case - Budget Revenue (Time and Material)**

Example:
Budget = 100000
Revenue = Budget - (Expenses + Invested Time (billable and non-billable))
Revenue = 70000 - (2000 + 50000 hours cost) = 18000
Revenue = 70000 - (2000 + 70000 hours cost) = 0

Total margin is average margin.
Total Expenses is sum of all Expenses

Filters
- with or without Expenses.
- with or without billable

**Budgeted Time Usage** for (Fixed Fee Cost) Convert Target Cost into Hours. 
If Target Cost - 70000 USD
Then use the "Per Hour Rate" value from Project settings and convert the Target Cost into Hours.