# Labor - Expected Margin ($/%)

The Expected Margin (%EM) is the computed from the [Expected Execution Budget](https://help.conduite.app/books/glossary/page/labor-expected-execution-budget "Labor - Expected Execution Budget") (EB\_E) and [labor](https://help.conduite.app/books/glossary/page/labor "Labor") (LB) amount of a contract.

<div drawio-diagram="79"><img src="https://help.conduite.app/uploads/images/drawio/2023-04/drawing-3-1680879406.png" alt=""/></div>

It can differ from the [Margin Objective](https://help.conduite.app/books/glossary/page/margin "Margin") (%MO) depending on how the project is going.

**Interpretation**

- **%EM &gt;= %MO** - The team will spent less money than expected. In such situations [Execution Efficiency](https://help.conduite.app/books/glossary/page/labor-execution-efficiency "Labor - Execution Efficiency ⭐") is &gt;= 100%.
- **%EM &lt;= %MO** - The team will spent more money than expected. In such situations Execution Efficiency is &lt;= 100%.