Budget Calculator
Plan your monthly budget using the 50/30/20 rule: 50% needs, 30% wants, 20% savings.
Monthly After-Tax Income
Needs (target 50%)
Wants (target 30%)
Savings (target 20%)
Budget Overview
Needs
$2,800
56%
Over budgetWants
$700
14%
Under budgetSavings
$800
16%
Under budgetTotal spending$4,300
Leftover / Unallocated$700
Budget Allocation
How This Budget Calculator Works
Formula
Uses the 50/30/20 budgeting rule to allocate income:
- 50% — Needs (housing, food, insurance, utilities)
- 30% — Wants (entertainment, dining, hobbies)
- 20% — Savings & debt payoff
Worked Example
Monthly income: $4,000
- Needs (50%): $2,000 (rent, groceries, insurance)
- Wants (30%): $1,200 (streaming, dining, hobbies)
- Savings (20%): $800 (emergency fund, retirement, debt payoff)
Common Questions
What if my needs exceed 50%?
Common in high cost-of-living areas. Adjust: reduce wants to 20–25%, maintain 20%+ for savings. Alternatively, look to increase income or reduce housing cost.
Where does debt fit?
Debt payments go in the 20% savings category. Prioritize high-interest debt first, then build other savings once cleared.
Should I budget every dollar?
This rule is a starting point. If 50/30/20 doesn't fit your life, adjust to 60/20/20 or 40/40/20—consistency matters more than the exact ratio.
Key Takeaways
- A simple 50/30/20 budget is easier to follow than tracking every expense.
- The goal: save 20%+ of income. Even 10% beats zero and compounds over time.
- Review quarterly; adjust categories as needed (marriage, kids, job change affect budgets).