As an advanced study on the method of calculating the target revenue water ratio of local waterworks through the leakage component analysis method proposed by Kim et al. (2022), this study developed a model to calculate the achievable revenue water ratio within the specified project cost, the required project cost to achieve the specified target revenue water ratio, and the economically appropriate target revenue water ratio level by considering the leakage reduction cost and leakage reduction benefit for each revenue water ratio improvement strategy, and conducted an applicability evaluation of the developed model using actual field data. The procedure for calculating the target revenue water ratio of local waterworks considering economics proposed in this study consists of three stages: physical data linkage model construction, leakage component analysis, and economic analysis, and the applicability was evaluated for Zone H with branch type and the Zone M network type. As a result of the application, it was calculated that approximately 32.5 billion won would be required to achieve the target revenue water ratio of 70% in the Zone H, and approximately KRW 10.5 billion would be required to achieve the target revenue water ratio of 75% in the Zone M. If the business scale of Zones H and M was corrected to 10,000 ㎥/day of water usage, the required project cost for a 1% improvement in the revenue water ratio of Zone H was calculated to be 0.7642 billion won and 0.4715 billion won for Zone M.