diff --git a/packages/angular/build/src/utils/bundle-calculator_spec.ts b/packages/angular/build/src/utils/bundle-calculator_spec.ts
index 01a5e77745de..c15338acfa2a 100644
--- a/packages/angular/build/src/utils/bundle-calculator_spec.ts
+++ b/packages/angular/build/src/utils/bundle-calculator_spec.ts
@@ -8,7 +8,7 @@
 
 import { BudgetEntry, BudgetType, ThresholdSeverity, checkBudgets } from './bundle-calculator';
 
-const KB = 1024;
+const kB = 1000;
 
 describe('bundle-calculator', () => {
   describe('checkBudgets()', () => {
@@ -24,11 +24,11 @@ describe('bundle-calculator', () => {
         assets: [
           {
             name: 'foo.js',
-            size: 1.5 * KB,
+            size: 1.5 * kB,
           },
           {
             name: 'bar.js',
-            size: 0.5 * KB,
+            size: 0.5 * kB,
           },
         ],
       };
@@ -55,11 +55,11 @@ describe('bundle-calculator', () => {
         assets: [
           {
             name: 'foo.js',
-            size: 1.5 * KB,
+            size: 1.5 * kB,
           },
           {
             name: 'bar.js',
-            size: 0.5 * KB,
+            size: 0.5 * kB,
           },
         ],
       };
@@ -93,11 +93,11 @@ describe('bundle-calculator', () => {
         assets: [
           {
             name: 'foo.js',
-            size: 0.75 * KB,
+            size: 0.75 * kB,
           },
           {
             name: 'bar.js',
-            size: 0.75 * KB,
+            size: 0.75 * kB,
           },
         ],
       };
@@ -131,11 +131,11 @@ describe('bundle-calculator', () => {
         assets: [
           {
             name: 'foo.js',
-            size: 0.5 * KB,
+            size: 0.5 * kB,
           },
           {
             name: 'bar.js',
-            size: 0.75 * KB,
+            size: 0.75 * kB,
           },
         ],
       };
@@ -169,15 +169,15 @@ describe('bundle-calculator', () => {
         assets: [
           {
             name: 'foo.js',
-            size: 0.75 * KB,
+            size: 0.75 * kB,
           },
           {
             name: 'bar.js',
-            size: 0.75 * KB,
+            size: 0.75 * kB,
           },
           {
             name: 'baz.css',
-            size: 1.5 * KB,
+            size: 1.5 * kB,
           },
         ],
       };
@@ -211,11 +211,11 @@ describe('bundle-calculator', () => {
         assets: [
           {
             name: 'foo.js',
-            size: 0.75 * KB,
+            size: 0.75 * kB,
           },
           {
             name: 'bar.css',
-            size: 0.75 * KB,
+            size: 0.75 * kB,
           },
         ],
       };
@@ -249,11 +249,11 @@ describe('bundle-calculator', () => {
         assets: [
           {
             name: 'foo.css',
-            size: 1.5 * KB,
+            size: 1.5 * kB,
           },
           {
             name: 'bar.js',
-            size: 0.5 * KB,
+            size: 0.5 * kB,
           },
         ],
       };
@@ -282,11 +282,11 @@ describe('bundle-calculator', () => {
         assets: [
           {
             name: 'foo.js',
-            size: 1.5 * KB,
+            size: 1.5 * kB,
           },
           {
             name: 'bar.js',
-            size: 0.5 * KB,
+            size: 0.5 * kB,
           },
         ],
       };
@@ -320,11 +320,11 @@ describe('bundle-calculator', () => {
         assets: [
           {
             name: 'foo.ext',
-            size: 1.5 * KB,
+            size: 1.5 * kB,
           },
           {
             name: 'bar.ext',
-            size: 0.5 * KB,
+            size: 0.5 * kB,
           },
         ],
       };
diff --git a/packages/angular/build/src/utils/format-bytes.ts b/packages/angular/build/src/utils/format-bytes.ts
index 69079ad566aa..f51c03692da1 100644
--- a/packages/angular/build/src/utils/format-bytes.ts
+++ b/packages/angular/build/src/utils/format-bytes.ts
@@ -12,8 +12,8 @@ export function formatSize(size: number): string {
   }
 
   const abbreviations = ['bytes', 'kB', 'MB', 'GB'];
-  const index = Math.floor(Math.log(size) / Math.log(1024));
-  const roundedSize = size / Math.pow(1024, index);
+  const index = Math.floor(Math.log(size) / Math.log(1000));
+  const roundedSize = size / Math.pow(1000, index);
   // bytes don't have a fraction
   const fractionDigits = index === 0 ? 0 : 2;
 
diff --git a/packages/angular/build/src/utils/format-bytes_spec.ts b/packages/angular/build/src/utils/format-bytes_spec.ts
new file mode 100644
index 000000000000..71e51b35ca48
--- /dev/null
+++ b/packages/angular/build/src/utils/format-bytes_spec.ts
@@ -0,0 +1,27 @@
+/**
+ * @license
+ * Copyright Google LLC All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import { formatSize } from './format-bytes';
+
+describe('formatSize', () => {
+  it('1000 bytes to be 1kB', () => {
+    expect(formatSize(1000)).toBe('1.00 kB');
+  });
+
+  it('1_000_000 bytes to be 1MB', () => {
+    expect(formatSize(1_000_000)).toBe('1.00 MB');
+  });
+
+  it('1_500_000 bytes to be 1.5MB', () => {
+    expect(formatSize(1_500_000)).toBe('1.50 MB');
+  });
+
+  it('1_000_000_000 bytes to be 1GB', () => {
+    expect(formatSize(1_000_000_000)).toBe('1.00 GB');
+  });
+});
diff --git a/packages/schematics/angular/application/index.ts b/packages/schematics/angular/application/index.ts
index 771cc76e78b7..30f40678a4f7 100644
--- a/packages/schematics/angular/application/index.ts
+++ b/packages/schematics/angular/application/index.ts
@@ -194,31 +194,31 @@ function addAppToWorkspaceFile(
   }
 
   const sourceRoot = join(normalize(projectRoot), 'src');
-  let budgets = [];
+  let budgets: { type: string; maximumWarning: string; maximumError: string }[] = [];
   if (options.strict) {
     budgets = [
       {
         type: 'initial',
-        maximumWarning: '500kb',
-        maximumError: '1mb',
+        maximumWarning: '500kB',
+        maximumError: '1MB',
       },
       {
         type: 'anyComponentStyle',
-        maximumWarning: '2kb',
-        maximumError: '4kb',
+        maximumWarning: '2kB',
+        maximumError: '4kB',
       },
     ];
   } else {
     budgets = [
       {
         type: 'initial',
-        maximumWarning: '2mb',
-        maximumError: '5mb',
+        maximumWarning: '2MB',
+        maximumError: '5MB',
       },
       {
         type: 'anyComponentStyle',
-        maximumWarning: '6kb',
-        maximumError: '10kb',
+        maximumWarning: '6kB',
+        maximumError: '10kB',
       },
     ];
   }