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Budget types in Projects

Discover essential budget types for projects, their applications, and how to effectively manage financial resources for success.

Table of Contents

Time and materials budget How to configure a Time and materials budget Monitor budget based on tracked hours What you can track in Time and materials projects Fixed price budget How Fixed price budgets work How to configure a Fixed price budget What you can track in Fixed price projects No budget limit How No budget limit projects work How to configure a No budget project What you can track in No budget limit projects

In Projects, budgets help you plan, monitor, and control financial performance depending on how a project is billed and delivered.

There are three budget types available:

No budget limit: Bill at standard hourly rates with no spending restrictions.
Fixed price: Change a flat rate, regardless of hours worked.
Time and materials: Set a maximum budget based on the expected hours and expenses.

Time and materials budget

A Time and materials (T&M) project is billed based on tracked hours and rates. The budget evolves as work is logged, giving you real-time visibility into costs, billable amounts, and profitability.

How to configure a Time and materials budget

In your sidebar, go to Projects
Select a project
Within the project, click on Edit on the upper right corner to access settings
Scroll down to the Planning configuration section
In budget type, choose Time and materials
- Set the client budget (include estimated expenses)
- Set the planned hours

Monitor budget based on tracked hours

In Time and materials projects, the budget is monitored based on:

Tracked hours
Cost rates and bill rates
Fixed and variable costs

As team members log time, the project automatically updates:

Used vs total budget
Registered vs estimated cost
Current vs estimated profit

What you can track in Time and materials projects

Depending on your configuration, you can track:

Financial details
- Used vs client budget: Billable-to-date amount vs remaining
- Cost to-date
- Current profit
Project status
- Tracked hours
- Completed tasks
Progress breakdown
Filter it by date and status
- Hours evolution
  - Hours or cost progress
- Distribution by
  - Person
  - Date
  - Hours or cost progress

All values update automatically as time and costs are registered.

Fixed price budget

A Fixed price project is billed for a pre-agreed amount, regardless of the number of hours worked. The focus is on tracking costs and profitability, not on billing based on time. In Fixed price projects, Factorial helps you understand whether the project is profitable compared to the agreed income.

How Fixed price budgets work

In a Fixed price project:

Income is defined upfront (flat fee)
Costs increase as work is delivered
Profit is calculated as:
- Income − Total cost

Tracked hours are still important, but they are used to:

Calculate labor cost
Monitor overspending
Understand project efficiency

They do not affect the billed amount.

How to configure a Fixed price budget

In your sidebar, go to Projects
Select a project
Within the project, click on Edit on the upper right corner to access settings
Scroll down to the Planning configuration section
In budget type, choose Fixed price
- Set a planned cost
- Set a planned income

You will get a calculation of the margin of benefit over your planned cost.

What you can track in Fixed price projects

In the project overview, you can monitor:

Financial details
- Cost to-date vs planned cost
- Current vs estimated profit
Project status
- Tracked hours
- Completed tasks
Progress breakdown
Filter it by date and status
- Hours evolution
  - Hours or cost progress
- Distribution by
  - Person
  - Date
  - Hours or cost progress

This gives you a clear picture of whether the project is:

On budget
At risk
Or already unprofitable

No budget limit

A No budget limit project lets you track work and financials without setting budget limits.

This option is designed for teams that want visibility, not control: you can see costs, billable amounts, and profit, but the project is not constrained by a predefined budget.

How No budget limit projects work

In a No budget limit project:

No estimated cost, hours, or client budget is required
There are no budget limits or alerts
Work can continue regardless of cost or time spent

As the project progresses, Factorial still tracks:

Tracked hours
Labor cost
Fixed and variable costs
Billable-to-date amount (if the project is billable)
Current profit and profit margin

This gives you full transparency without enforcing financial thresholds.

How to configure a No budget project

In your sidebar, go to Projects
Select a project
Within the project, click on Edit on the upper right corner to access settings
Scroll down to the Planning configuration section
In budget type, choose No budget limit

What you can track in No budget limit projects

In the project overview, you’ll see:

Financial details
- Billable-to-date
- Cost to-date
- Current profit
Project status
- Tracked hours
- Completed tasks
Progress breakdown
Filter it by date and status
- Hours evolution
  - Hours or cost progress
- Distribution by
  - Person
  - Date
  - Hours or cost progress

Unlike other budget types:

There is no “used vs total budget”
There are no overspending indicators

The focus is on monitoring, not enforcement.

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