I will provide a live example (my own) for clarification purposes-
My iPhone 12 PRO MAX has a total available storage capacity of 256GB. I have used up 130GB of space. This leaves 126GB of free storage space on my iPhone.
I have a MacBook Air with a total capacity of 256GB. I have used up 120GB of space and that leaves 136GB of free storage space on my MacBook Air.
I backup my iPhone on my MacBook Air as well. That backup file on my MacBook Air is approximately 50GB. The backup file size is more than half the size of the actual space that is used up on my iPhone. Why is that? This is because I also use iCloud (paid version) for backups. All the media files from my iPhone (Photos, Videos, Music etc). are stored on iCloud and the backup file on my Mac only has reference links to that data in Cloud. Having iCloud backups makes the MacBook backup size a lot smaller. That is my setup.
To elaborate further, if you use iCloud for backups then you do not need to backup on a computer as well. I just chose to do so. If you do not use iCloud for backups and only use your computer then your backup file size will be nearly equal to the space used on your iPhone (minus system files which is usually around 9GB or so).
No matter which method(s) you use, your goal should be have at least 25GB of free space on your Mac for efficient operation.
Axel F.