diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 3f5b2f9cdbd1..0a50b6549bb0 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -6677,6 +6677,11 @@ function populateOptimisticReportFormula(formula: string, report: OptimisticExpe
 
     const createdDate = report.lastVisibleActionCreated ? new Date(report.lastVisibleActionCreated) : undefined;
 
+    const totalAmount = report.total !== undefined && !Number.isNaN(report.total) ? Math.abs(report.total) : 0;
+    const nonReimbursableTotal =
+        'nonReimbursableTotal' in report && report.nonReimbursableTotal !== undefined && !Number.isNaN(report.nonReimbursableTotal) ? Math.abs(report.nonReimbursableTotal) : 0;
+    const reimbursableAmount = totalAmount - nonReimbursableTotal;
+
     const result = formula
         // We don't translate because the server response is always in English
         .replaceAll(/\{report:type\}/gi, 'Expense Report')
@@ -6684,6 +6689,7 @@ function populateOptimisticReportFormula(formula: string, report: OptimisticExpe
         .replaceAll(/\{report:enddate\}/gi, createdDate ? format(createdDate, CONST.DATE.FNS_FORMAT_STRING) : '')
         .replaceAll(/\{report:id\}/gi, getBase62ReportID(Number(report.reportID)))
         .replaceAll(/\{report:total\}/gi, report.total !== undefined && !Number.isNaN(report.total) ? convertToDisplayString(Math.abs(report.total), report.currency).toString() : '')
+        .replaceAll(/\{report:reimbursable\}/gi, report.total !== undefined && !Number.isNaN(report.total) ? convertToDisplayString(reimbursableAmount, report.currency).toString() : '')
         .replaceAll(/\{report:currency\}/gi, report.currency ?? '')
         .replaceAll(/\{report:policyname\}/gi, policy?.name ?? '')
         .replaceAll(/\{report:workspacename\}/gi, policy?.name ?? '')
diff --git a/src/libs/actions/IOU/index.ts b/src/libs/actions/IOU/index.ts
index 086c8b635334..89ac19a03e81 100644
--- a/src/libs/actions/IOU/index.ts
+++ b/src/libs/actions/IOU/index.ts
@@ -186,6 +186,7 @@ import {
     isSettled,
     isTestTransactionReport,
     isTrackExpenseReport,
+    populateOptimisticReportFormula,
     prepareOnboardingOnyxData,
     shouldCreateNewMoneyRequestReport as shouldCreateNewMoneyRequestReportReportUtils,
     shouldEnableNegative,
@@ -2991,6 +2992,22 @@ function getDeleteTrackExpenseInformation(
     return {parameters, optimisticData, successData, failureData, shouldDeleteTransactionThread, chatReport};
 }
 
+/**
+ * Recalculates the report name using the policy's custom title formula.
+ * This is needed when report totals change (e.g., adding expenses or changing reimbursable status)
+ * to ensure the report title reflects the updated values like {report:reimbursable}.
+ */
+function recalculateOptimisticReportName(iouReport: OnyxTypes.Report, policy: OnyxEntry<OnyxTypes.Policy>): string | undefined {
+    if (!policy?.fieldList?.[CONST.POLICY.FIELDS.FIELD_LIST_TITLE]) {
+        return undefined;
+    }
+    const titleFormula = policy.fieldList[CONST.POLICY.FIELDS.FIELD_LIST_TITLE]?.defaultValue ?? '';
+    if (!titleFormula) {
+        return undefined;
+    }
+    return populateOptimisticReportFormula(titleFormula, iouReport as Parameters<typeof populateOptimisticReportFormula>[1], policy);
+}
+
 /**
  * Gathers all the data needed to submit an expense. It attempts to find existing reports, iouReports, and receipts. If it doesn't find them, then
  * it creates optimistic versions of them and uses those instead
@@ -3133,6 +3150,12 @@ function getMoneyRequestInformation(moneyRequestInformation: MoneyRequestInforma
                         iouReport.nonReimbursableTotal = (iouReport.nonReimbursableTotal ?? 0) - amount;
                     }
                 }
+
+                // Recalculate reportName to reflect updated totals
+                const updatedReportName = recalculateOptimisticReportName(iouReport, policy);
+                if (updatedReportName) {
+                    iouReport.reportName = updatedReportName;
+                }
             }
             if (typeof iouReport.unheldTotal === 'number') {
                 // Use newReportTotal in scenarios where the total is based on more than just the current transaction amount, and we need to override it manually
@@ -4248,6 +4271,12 @@ function getUpdateMoneyRequestParams(params: GetUpdateMoneyRequestParamsType): U
                 updatedMoneyRequestReport.unheldNonReimbursableTotal += updatedTransaction.reimbursable ? -updatedTransaction.amount : updatedTransaction.amount;
             }
         }
+
+        // Recalculate reportName after all totals are updated
+        const updatedReportName = recalculateOptimisticReportName(updatedMoneyRequestReport, policy);
+        if (updatedReportName) {
+            updatedMoneyRequestReport.reportName = updatedReportName;
+        }
     } else {
         updatedMoneyRequestReport = updateIOUOwnerAndTotal(
             iouReport,