A method and apparatus for improving the timing accuracy of an integrated circuit through region-based voltage drop budgets is provided. Further, a method for performing timing analysis on an integrated circuit partitioned into voltage drop regions is provided. During the timing analysis, a set of logic paths segments in each voltage drop region is tested to ensure that the integrated circuit meets a set of predefined timing requirements. Logic path segments that reside in different voltage drop regions are tested using a supply voltage inputted by the respective voltage drop region.