Yeast Starter Size

According to the Beer Smith Calculator, I need a 1500ml starter size.  Is that calculation based on how much water I need or total volume after adding DME and the smack pack?  The reason I ask is that if I use 1500ml of water, add the 5oz of DME, then add the yeast packet, I'm at nearly 1700ml total volume. The other reason I question this calculation is because my 2000ml flask will be almost completely full. 

Volume of the starter is the total volume of the starter wort, i.e. the water plus DME.  The smack pack starter will add to the volume (generally 125 ml) above the starter.