> For the complete documentation index, see [llms.txt](https://docs.otari.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.otari.ai/how-to-guides/set-a-budget-and-ceiling.md).

# Set a budget & ceiling

Create a spending budget, then apply it with a ceiling.

A budget defines how much can be spent and over what period of time. On its own, it doesn’t limit spending. To enforce a budget, you need to create a **spend ceiling** and apply it to an organization, workspace, or API key.

{% hint style="info" %}
A budget does not block requests until you attach it to a spend ceiling.
{% endhint %}

For the model behind scopes and periods, see [Budgets](/learn/budgets.md).

***

### Create a budget

1. From the dashboard, open **Organization** and select **Spend & Budgets**.
2. Click **Add budget**.
3. Follow the steps in the setup wizard:
   1. **Name**: Give it a name (optional)
   2. **Amount**: USD limit, or leave blank for no limit
   3. **Period**: Daily, Weekly, or Monthly
4. Click **Add budget**.

The budget resets automatically at the start of each period, in UTC.

***

### Apply a spend ceiling

A spend ceiling links a specific identity to a budget, defining what each budget actually limits. Every ceiling that applies to a request must be respected. For example, if both an organization-wide ceiling and a workspace ceiling apply, the request must stay within both limits. To create a ceiling:

1. In **Spend & Budgets**, click **Add ceiling**.
2. Follow the steps in the setup wizard:
   1. **Capping**: Choose whether the ceiling applies to the entire organization or to a specific workspace.
   2. **Provider instance**: Select a specific provider to limit spending for that provider only, or leave this blank to apply the ceiling across all providers.
   3. **Budget**: Select the budget you want this ceiling to use.
   4. **Name**: Optionally, give the ceiling a name to make it easier to identify.
3. Click **Add ceiling** to save it

Requests matching the ceiling count toward its budget. When the budget is exhausted, Otari blocks new matching requests until the next reset.

{% hint style="warning" %}
Multiple ceilings are enforced independently. A request is blocked when any matching ceiling is exhausted.
{% endhint %}

***

### Confirm enforcement

Check the budget's status in **Spend & Budgets**. Green indicates less than 80% use. Yellow indicates 80–100% use. Red means the budget is exhausted.


---

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