Calculation of power budget in fiber deployent is one of the biggest challenge. If the power is more or less than the power budget, it will bring lot of problems like throughput, drops and many more. One must ensure that the end to end link is working up to the level and able to delivery according to the commitment and design. To ensure these parameters, one must know about how to calculate the end to end power budget. Power budget is nothing but it provides the margin that compensates for variations of transmitter power and receiver sensitivity levels.

Power Budget = Minimum Transmit Power – Minimum Receiver Sensitivity Level