How it works
How your project budget is calculated
# How your project budget is calculated
> The difference between a base budget and a total budget, how Simple and Detailed modes differ, and what approved change orders and payments change.
A renovation project has two budget numbers. The **base budget** is what you plan and type in. The **total budget** is the base plus every approved change order. You edit the base. Re:InvestorHub works out the total for you.
## The parts
| On screen | What it means |
|---|---|
| **Total Project Budget** (Simple mode) | The base budget you type. It is the only budget field you edit in Simple mode. |
| **Estimated Budget** (Detailed mode) | The sum of every line item's **Total**. This is your base in Detailed mode. |
| **Base Budget** | Shown at the top of the Budget tab once a change order has been approved. The base before change orders. |
| **+ $X approved change orders** | The sum of the change orders you approved. |
| **Total Budget** | Base plus approved change orders. The same figure appears in the **Total Budget** card at the top of the project. |
| **Amount Paid** | The payments you have logged. |
| **Amount Owed** (Simple) / **Remaining** (Detailed) | What is left to pay. |
## Simple and Detailed
The **Budget** tab has a **Simple** and a **Detailed** switch. Switching does not delete what you entered in the other mode.
**Simple** is one number. You enter a **Total Project Budget**, then log payments against it. **Amount Owed** is the total budget minus **Amount Paid**, never below zero, and the progress bar shows paid as a share of the total budget.
**Detailed** is a budget built from phases and line items. A line item's **Total** is its **Labor** plus its **Materials**, added for you. The base budget is the sum of all line item totals, and **Amount Paid** is the sum of the payments logged on the line items. Line items you have not placed in a phase are still counted.
> **Note:** A new project begins in Simple mode. If you start a rehab from the Deal Pipeline, the deal's rehab budget becomes its total budget when the deal had one. Switch to Detailed on the **Budget** tab when you want phases and line items.
## How it changes as you work
1. **You edit the base.** Type a new **Total Project Budget** in Simple mode, or add and change line items in Detailed mode. The total updates to match.
2. **You log a payment.** **Amount Paid** goes up and **Amount Owed** or **Remaining** goes down. In Simple mode **Log Payment** is disabled until the total budget is above zero.
3. **A change order is approved.** Its amount is added to the total budget in both modes. You do not edit the budget by hand. A change order that is still **Pending** or was **Rejected** adds nothing.
Only an **Admin** can approve a change order, so see [How roles and permissions work](https://docs.reinvestorhub.ai/how-it-works/roles-and-permissions/) if the **Approve** option is missing for you.
> **Warning:** In Detailed mode, do not add a line item for an approved change order. The total already includes it, so a matching line item would count the same money twice.
## A worked example
Maya budgets a rehab in Simple mode with a **Total Project Budget** of **$48,000**. She logs two payments, **$12,000** and **$8,000**.
- **Amount Paid:** $20,000
- **Amount Owed:** $28,000
Her contractor finds rotted subfloor, and she approves a **$3,500** change order.
- **Base Budget:** $48,000
- **+ $3,500 approved change orders**
- **Total Budget:** $51,500
- **Amount Owed:** $51,500 minus $20,000, which is $31,500
Her base budget never changed. If she rejected the change order instead, every number would stay as it was.
## Good to know
- Removing a line item deletes its cost estimate and the payments logged against it, and the total budget drops with it.
- Amount Owed and the progress bar measure against the total budget, not the base. The moment you approve a change order, the amount left to pay rises.
- In Detailed mode, the **Estimated Budget** card on the Budget tab adds up line items only. The **Total Budget** card at the top of the project includes approved change orders.
- Approving a change order that adds days to the schedule also moves the project's target completion date back by those days, when the project has one.
- The budget a deal carried while you analyzed it is separate from the project's budget. After the project exists, change its budget on the project's **Budget** tab.
## Related
- [Budget and change orders](https://docs.reinvestorhub.ai/guides/run-a-renovation-project/budget-and-change-orders/): Set a budget, log payments and create change orders.
- [Project statuses](https://docs.reinvestorhub.ai/reference/field-reference/project-statuses/): What each project status means.
- [How the deal pipeline works](https://docs.reinvestorhub.ai/how-it-works/the-deal-pipeline/): How starting a rehab creates a project.
- [Roles explained](https://docs.reinvestorhub.ai/reference/team-and-roles/roles-explained/): Who can approve a change order.
The difference between a base budget and a total budget, how Simple and Detailed modes differ, and what approved change orders and payments change.
A renovation project has two budget numbers. The base budget is what you plan and type in. The total budget is the base plus every approved change order. You edit the base. Re:InvestorHub works out the total for you.
The parts
Section titled “The parts”| On screen | What it means |
|---|---|
| Total Project Budget (Simple mode) | The base budget you type. It is the only budget field you edit in Simple mode. |
| Estimated Budget (Detailed mode) | The sum of every line item’s Total. This is your base in Detailed mode. |
| Base Budget | Shown at the top of the Budget tab once a change order has been approved. The base before change orders. |
| + $X approved change orders | The sum of the change orders you approved. |
| Total Budget | Base plus approved change orders. The same figure appears in the Total Budget card at the top of the project. |
| Amount Paid | The payments you have logged. |
| Amount Owed (Simple) / Remaining (Detailed) | What is left to pay. |
Simple and Detailed
Section titled “Simple and Detailed”The Budget tab has a Simple and a Detailed switch. Switching does not delete what you entered in the other mode.
Simple is one number. You enter a Total Project Budget, then log payments against it. Amount Owed is the total budget minus Amount Paid, never below zero, and the progress bar shows paid as a share of the total budget.
Detailed is a budget built from phases and line items. A line item’s Total is its Labor plus its Materials, added for you. The base budget is the sum of all line item totals, and Amount Paid is the sum of the payments logged on the line items. Line items you have not placed in a phase are still counted.
How it changes as you work
Section titled “How it changes as you work”- You edit the base. Type a new Total Project Budget in Simple mode, or add and change line items in Detailed mode. The total updates to match.
- You log a payment. Amount Paid goes up and Amount Owed or Remaining goes down. In Simple mode Log Payment is disabled until the total budget is above zero.
- A change order is approved. Its amount is added to the total budget in both modes. You do not edit the budget by hand. A change order that is still Pending or was Rejected adds nothing.
Only an Admin can approve a change order, so see How roles and permissions work if the Approve option is missing for you.
A worked example
Section titled “A worked example”Maya budgets a rehab in Simple mode with a Total Project Budget of $48,000. She logs two payments, $12,000 and $8,000.
- Amount Paid: $20,000
- Amount Owed: $28,000
Her contractor finds rotted subfloor, and she approves a $3,500 change order.
- Base Budget: $48,000
- + $3,500 approved change orders
- Total Budget: $51,500
- Amount Owed: $51,500 minus $20,000, which is $31,500
Her base budget never changed. If she rejected the change order instead, every number would stay as it was.
Good to know
Section titled “Good to know”- Removing a line item deletes its cost estimate and the payments logged against it, and the total budget drops with it.
- Amount Owed and the progress bar measure against the total budget, not the base. The moment you approve a change order, the amount left to pay rises.
- In Detailed mode, the Estimated Budget card on the Budget tab adds up line items only. The Total Budget card at the top of the project includes approved change orders.
- Approving a change order that adds days to the schedule also moves the project’s target completion date back by those days, when the project has one.
- The budget a deal carried while you analyzed it is separate from the project’s budget. After the project exists, change its budget on the project’s Budget tab.