Formula
Received power (dBm) = transmitter power + transmit gain + receive gain − path loss − other losses. Link margin = received power − receiver sensitivity.
What the result means
Positive link margin means the estimated received power exceeds the stated sensitivity; negative margin identifies the shortfall. This power-budget result is only as complete as the losses and receiver threshold entered.
Use a receiver sensitivity defined for the intended data rate, modulation, coding, and error-rate target. A positive result is not a reliability guarantee.