Budget Calculator (50/30/20 Rule)

Split your monthly income into needs, wants and savings with the 50/30/20 budgeting rule.

What is the 50/30/20 budget rule?

The 50/30/20 rule divides after-tax income into 50 % for needs (housing, food, bills), 30 % for wants (dining out, hobbies) and 20 % for savings and extra debt payments.

How to use

Enter your monthly income after tax.
Keep 50/30/20 or set your own split (it must total 100 %).
Compare the amounts with what you actually spend.

If needs take more than 50 %, reduce wants first, then look at the biggest fixed costs. Build an emergency fund of 3–6 months of expenses before investing. Plan a specific target with the Savings Goal Calculator.

Frequently asked questions

Is 50/30/20 right for everyone?

It is a starting point; in expensive cities 60/20/20 or 70/20/10 may be more realistic.

Do minimum debt payments count as needs?

Yes; extra payments above the minimum go in savings.

Should I use gross or net income?

Net (after-tax) income.