Budget Calculator
Split your monthly income using the 50/30/20 budgeting rule.
Try an example
$2,500.00
About this calculator
How This Budget Calculator Works
Enter your monthly take-home (after-tax) income, and the calculator splits it into three categories using the 50/30/20 rule: needs, wants, and savings.
Worked Example
On $5,000/month take-home income: $2,500 for needs, $1,500 for wants, and $1,000 for savings and debt payoff.
The Formula
50% needs, 30% wants, 20% savings — a simple proportional split of after-tax income, popularized as an easy-to-remember starting framework for budgeting rather than a strict formula.
What Counts as Each Category
- Needs — rent or mortgage, utilities, groceries, insurance, minimum debt payments, transportation to work
- Wants — dining out, entertainment, subscriptions, hobbies, non-essential shopping
- Savings — retirement contributions, emergency fund, extra debt payoff beyond the minimum, investing
If your fixed needs already exceed 50% — common in high-cost areas — treat the percentages as a direction to work toward rather than a requirement, and adjust the wants/savings split to fit what's realistically left.
Worked example
On $5,000/month take-home income, the 50/30/20 rule allocates $2,500 to needs, $1,500 to wants, and $1,000 to savings and debt payoff.
Frequently asked questions
What counts as a 'need' versus a 'want'?
Needs are non-negotiable costs — rent, utilities, groceries, minimum debt payments. Wants are discretionary — dining out, entertainment, subscriptions. The line isn't always sharp, but the split is meant as a general guide.
What if my needs already take up more than 50%?
That's common in high-cost-of-living areas — the 50/30/20 split is a target to work toward, not a requirement. Consider adjusting the wants and savings percentages to fit your actual fixed costs.
Does this account for taxes?
No — enter your take-home (after-tax) income, since the split is meant to allocate what's actually available to spend.