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A link budget is an accounting of all of the power gains and losses that a communication signal experiences in a telecommunication system; from a transmitter, through a communication medium such as radio waves, cable, waveguide, or optical fiber, to the receiver. It is an equation giving the received power from the transmitter power, after the attenuation of the transmitted signal due to propagation, as well as the antenna gains and feedline and other losses, and amplification of the signal in the receiver or any repeaters it passes through. A link budget is a design aid, calculated during the design of a communication system to determine the received power, to ensure that the information is received intelligibly with an adequate signal-to-noise ratio. Randomly varying channel gains such as fading are taken into account by adding some margin depending on the anticipated severity of its effects. The amount of margin required can be reduced by the use of mitigating techniques such as antenna diversity or multiple-input and multiple-output (MIMO).
A simple link budget equation looks like this:
- Received power (dBm) = transmitted power (dBm) + gains (dB) − losses (dB)
Power levels are expressed in (dBm), Power gains and losses are expressed in decibels (dB), which is a logarithmic measurement, so adding decibels is equivalent to multiplying the actual power ratios.