diff --git a/docs/my-website/docs/proxy/team_budgets.md b/docs/my-website/docs/proxy/team_budgets.md
index 9e897d507e..54f5efddff 100644
--- a/docs/my-website/docs/proxy/team_budgets.md
+++ b/docs/my-website/docs/proxy/team_budgets.md
@@ -46,7 +46,7 @@ Possible values for `budget_duration`
 | `budget_duration="1m"` | every 1 min |
 | `budget_duration="1h"` | every 1 hour |
 | `budget_duration="1d"` | every 1 day |
-| `budget_duration="1mo"` | start of every month |
+| `budget_duration="1mo"` | every 1 month |
 
 
 ### 2. Create a key for the `team`
diff --git a/litellm/proxy/utils.py b/litellm/proxy/utils.py
index e40440ee35..ebe30789d7 100644
--- a/litellm/proxy/utils.py
+++ b/litellm/proxy/utils.py
@@ -2115,6 +2115,16 @@ def _extract_from_regex(duration: str) -> Tuple[int, str]:
     return value, unit
 
 
+def get_last_day_of_month(year, month):
+    # Handle December case
+    if month == 12:
+        return 31
+    # Next month is January, so subtract a day from March 1st
+    next_month = datetime(year=year, month=month + 1, day=1)
+    last_day_of_month = (next_month - timedelta(days=1)).day
+    return last_day_of_month
+
+
 def _duration_in_seconds(duration: str) -> int:
     """
     Parameters:
@@ -2141,13 +2151,29 @@ def _duration_in_seconds(duration: str) -> int:
         now = time.time()
         current_time = datetime.fromtimestamp(now)
 
-        # Calculate the first day of the next month
         if current_time.month == 12:
-            next_month = datetime(year=current_time.year + 1, month=1, day=1)
+            target_year = current_time.year + 1
+            target_month = 1
         else:
-            next_month = datetime(
-                year=current_time.year, month=current_time.month + value, day=1
-            )
+            target_year = current_time.year
+            target_month = current_time.month + value
+
+        # Determine the day to set for next month
+        target_day = current_time.day
+        last_day_of_target_month = get_last_day_of_month(target_year, target_month)
+
+        if target_day > last_day_of_target_month:
+            target_day = last_day_of_target_month
+
+        next_month = datetime(
+            year=target_year,
+            month=target_month,
+            day=target_day,
+            hour=current_time.hour,
+            minute=current_time.minute,
+            second=current_time.second,
+            microsecond=current_time.microsecond,
+        )
 
         # Calculate the duration until the first day of the next month
         duration_until_next_month = next_month - current_time
diff --git a/litellm/tests/test_utils.py b/litellm/tests/test_utils.py
index 742199c7f9..7d581a0fb0 100644
--- a/litellm/tests/test_utils.py
+++ b/litellm/tests/test_utils.py
@@ -26,7 +26,11 @@ from litellm.utils import (
     get_max_tokens,
     get_supported_openai_params,
 )
-from litellm.proxy.utils import _duration_in_seconds, _extract_from_regex
+from litellm.proxy.utils import (
+    _duration_in_seconds,
+    _extract_from_regex,
+    get_last_day_of_month,
+)
 
 # Assuming your trim_messages, shorten_message_to_fit_limit, and get_token_count functions are all in a module named 'message_utils'
 
@@ -467,15 +471,31 @@ def test_duration_in_seconds():
 
     now = time.time()
     current_time = datetime.fromtimestamp(now)
-    print("current_time={}".format(current_time))
-    # Calculate the first day of the next month
+
     if current_time.month == 12:
-        next_month = datetime(year=current_time.year + 1, month=1, day=1)
+        target_year = current_time.year + 1
+        target_month = 1
     else:
-        next_month = datetime(
-            year=current_time.year, month=current_time.month + 1, day=1
-        )
-    print("next_month={}".format(next_month))
+        target_year = current_time.year
+        target_month = current_time.month + 1
+
+    # Determine the day to set for next month
+    target_day = current_time.day
+    last_day_of_target_month = get_last_day_of_month(target_year, target_month)
+
+    if target_day > last_day_of_target_month:
+        target_day = last_day_of_target_month
+
+    next_month = datetime(
+        year=target_year,
+        month=target_month,
+        day=target_day,
+        hour=current_time.hour,
+        minute=current_time.minute,
+        second=current_time.second,
+        microsecond=current_time.microsecond,
+    )
+
     # Calculate the duration until the first day of the next month
     duration_until_next_month = next_month - current_time
     expected_duration = int(duration_until_next_month.total_seconds())