Budget Calculator
Split your take-home pay into needs, wants and savings.
Formula
About this calculator
The 50/30/20 rule is the simplest budgeting framework that actually works, which is why it has outlasted dozens of complicated systems. Take your monthly take-home pay — the amount that lands in your account after taxes and deductions — and aim to spend no more than 50% on needs, up to 30% on wants, and at least 20% on savings and debt payoff. This calculator sets those targets for your income and shows how your real spending compares.
Needs are the things you genuinely can't skip: rent or mortgage, groceries, utilities, insurance, transportation to work, and the minimum payments on any debt. Wants are the flexible extras — dining out, streaming subscriptions, travel, hobbies and shopping. The line between the two isn't always obvious, and that's the point: seeing your spending sorted this way forces the useful question of which 'needs' are really wants in disguise.
The final 20% is where wealth is built. It covers your emergency fund, retirement contributions, investments and any extra debt payments beyond the minimums. If the calculator shows you're spending more than 50% on needs, that usually points to housing or transportation costs that are too high for your income — the two areas with the biggest long-term impact.
Treat the percentages as a target, not a law. High-cost-of-living areas often push needs above 50%, in which case trimming wants to protect the savings rate is the smart trade. Once you know your 20% number, a debt-payoff or retirement calculator shows what that money can actually achieve over time.
Frequently asked questions
Should I budget on gross or take-home pay?
Use take-home (net) pay — the amount you actually receive after taxes and payroll deductions. Budgeting on gross income overstates what you have available to spend.
What if my needs are more than 50%?
That's common in expensive cities. The priority is protecting the 20% savings rate, so trim the wants category first. Persistently high needs usually signal housing or transportation costs that are stretching your budget.
Do minimum debt payments count as needs or savings?
Minimum required payments count as needs. Any extra you pay beyond the minimum to get out of debt faster counts toward the 20% savings-and-debt bucket.