Water losses in water distribution systems (WDSs) cause inefficiency of water resources and increase operating costs. Water loss management (WLM) methods generally have high initial investment and operating costs. However, the budget planned within the scope of WLM in administrations is generally limited. Therefore, the most appropriate method should be determined by considering the budget conditions and cost-benefit analysis. The aim of this study is to propose a new economic water loss level (EWLL) model in WDSs with the different budget constraints of 5, 15 and 20% of the annual income. This EWLL model was developed by the discrete stochastic optimization algorithm. The EWLL and economically recoverable leakage volumes were determined by considering the budget constraints. Moreover, the most appropriate methods were determined to reach the EWLL values defined according to the budget constraints. The EWLL was calculated as 8.62% by the optimization model without budget constraints. Moreover, the EWLL values with budget constraints of 5, 15 and 20% of the annual income were determined as 56.82, 21.14 and 18.02%, respectively. This EWLL model will make a significant contribution to the annual planning in WLM depending on the budget constraints of the administrations.