Budget Calculator (50/30/20)

50/30/20 Budget Calculator

The 50/30/20 rule is a simple budgeting framework: 50% of after-tax income goes to needs, 30% to wants, and 20% to savings and debt repayment. This tool compares your actual spending to the 50/30/20 recommendation and shows where you have a surplus or shortfall.

How to use

Enter your monthly take-home pay, your fixed (necessary) expenses like rent and utilities, and your variable (discretionary) expenses such as dining out and subscriptions. The calculator shows recommended bucket amounts and how your actual spending compares.

Interpreting results

• Recommended Needs (50%): The suggested monthly amount for essentials such as housing, utilities, groceries, and transportation.
• Recommended Wants (30%): Discretionary spending like entertainment, dining out, and subscriptions.
• Recommended Savings (20%): Target for savings and debt repayment. If your actual savings is below this, consider reducing discretionary spending or increasing income.

Next steps

1. Compare the recommended buckets to your real spending for the last 1–3 months.
2. Identify categories to reduce if you have a consistent shortfall in savings.
3. Automate transfers to savings to ensure the "pay yourself first" approach.

Use this calculator as a starting point — many users adjust the percentages to match their priorities, cost of living, or debt obligations.