Link budget
A link budget is the accounting of all of the gains and losses from the transmitter, through the medium (free space, cable, waveguide, fiber, etc.) to the receiver.
A simple link budget equation looks like this:
Received Power (dB) = Transmitted Power (dBm) - Losses (dB)
Link Budget for radio systems
For a line of sight radio system, a link budget equation might look like this:
RxP = TxP + TxG - TxL - FSL - ML + RxG - RxL where: RxP = received power TxP = transmitter output power (dBm) TxG = transmitter antenna gain (dBi) TxL = transmitter losses (coax, connectors...) (dB) FSL = free space loss or path loss (dB) ML = miscellaneous losses (fading, body loss, polarization mismatch, other losses...) (dB) RxG = receiver antenna gain (dB) RxL = receiver losses (coax, connectors...) (dB)
Line of sight deployments for example will have path losses that are related to the inverse square of the distance. This formula is typical of a free space loss equation:
FSL (dB) = 32.45 dB + 20*log[frequency(MHz)] + 20*log[distance(km)]
Reception is reliable when RxP > receiver sensitivity
Link Budgets for non-line of sight radio
Indoor deployments for example will have path losses that are related to the inverse cube of the distance. The link budget for an over the horizon radio path may include other path losses such as refraction, reflection, multipath... etc.
Link Budgets for other media
Media such as cable, waveguide, fiber, etc. have losses that are linear over distance. The path loss will be in terms of dB per meter or dB per 100 feet.
See also
References
Frank Ohrtman Konrad Roeder Wi-Fi Handbook : Building 802.11b Wireless Networks McGraw-Hill, Inc. (2003) ISBN 0071412514 LOC TX-5-808-342 004.678 OHR