Budget Calculator (50/30/20 Rule)
Split your monthly take-home pay into needs, wants and savings. You can change the percentages to fit your life.
When to use this calculator
Use this calculator when you want a simple starting plan for your money. The 50/30/20 rule splits take-home pay into 50% for needs, 30% for wants and 20% for savings and debt payoff. You can change the percentages to match your life.
Example budgets
How this calculator works
The 50/30/20 rule puts 50 percent of take-home pay toward needs (rent, food, bills), 30 percent toward wants and 20 percent toward savings or debt. Each amount here is your take-home pay times the percentage. If your percentages do not add up to 100, the last row will show it.
Step-by-step example
Using these inputs: Monthly take-home pay ($): 4000; Needs (%): 50; Wants (%): 30; Savings and debt payoff (%): 20.
With $4,000 of monthly take-home pay, the rule gives $2,000 to needs, $1,200 to wants and $800 to savings and debt, which adds up to $9,600 saved a year.
Tips for a better estimate
- Use your take-home pay after tax, not your gross salary.
- If housing and bills take more than 50%, try 60/20/20 for a while rather than giving up on the plan.
- Pay yourself first. Move the savings amount out as soon as you are paid, before you spend.
FAQ
What counts as a need?
Housing, utilities, groceries, transport, insurance and minimum debt payments.
What if my needs are above 50 percent?
That is common in expensive areas. Try lowering wants a little or raising income over time.
Is this a strict rule?
No. It is a simple starting point to adjust.
What counts as a need?
Rent or mortgage, utilities, groceries, transportation, insurance and minimum debt payments are usually needs.
What counts as a want?
Dining out, streaming, travel, hobbies and shopping beyond the basics. If you can live without it, it is a want.
Is the 50/30/20 rule right for everyone?
It is a starting point, not a law. High housing costs or high debt may call for different percentages.
Rates and limits last updated: October 2026. This is an estimate for general information only, not financial, tax or legal advice.
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