Monthly Budget Calculator
Plan your spending with the 50/30/20 rule
50/30/20 Budget Calculator
Your net income after taxes.
Include property tax/insurance if homeowner.
Gas, car payment, insurance, public transit.
Credit card minimums, student loan minimums.
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Start Free TrialUse our free Monthly Budget Calculator to organize your finances using the popular 50/30/20 rule. Enter your income and expenses to see exactly where your money is going and whether your spending is balanced. The 50/30/20 rule suggests spending 50% on Needs, 30% on Wants, and 20% on Savings.
How to Use This 50/30/20 Budget Calculator
- 1Enter your monthly net (after-tax) income.
- 2Fill in your 'Needs' expenses (housing, groceries, utilities).
- 3Fill in your 'Wants' expenses (dining, entertainment, shopping).
- 4Fill in your 'Savings' contributions and extra debt payments.
- 5Click Calculate to see if your budget follows the 50/30/20 rule.
Understanding Your Results
The results will show you a breakdown of your budget into three main buckets: **Needs** (Essentials), **Wants** (Lifestyle), and **Savings** (Financial Goals). You'll see if you are 'Over', 'Under', or 'On Track' for each percentage target. Ideally, your total expenses should not exceed your income, and you should aim to save at least 20%.
Frequently Asked Questions
The 50/30/20 rule is a simple budgeting framework that suggests dividing your after-tax income into three categories: 50% for Needs (essentials like rent, groceries), 30% for Wants (non-essentials like dining out, hobbies), and 20% for Savings and Extra Debt Repayment. It provides a balanced approach to managing your money without strict tracking of every penny.
Needs are expenses you cannot avoid without serious consequences, such as housing, utilities, basic groceries, Minimum debt payments, and transportation to work. Wants are discretionary expenses like dining out, entertainment, travel, subscription services, and upgraded items (like a new phone when your old one works fine).
Use your net income (take-home pay), which is the amount deposited into your bank account after taxes and deductions. If your income varies (freelance or hourly), calculate the average of your last 3-6 months' income to get a reliable baseline.
It's common for needs to exceed 50%, especially in high-cost living areas. If your needs occupy 60% or 70% of your income, you may need to reduce your Wants (e.g., cut dining out) or find ways to lower your fixed costs (e.g., cheaper rent, refinancing debt) to balance your budget. Alternatively, focus on increasing your income.
The 50/30/20 rule typically applies to net (after-tax) income. However, if you contribute to a 401(k) pre-tax, that counts toward your 20% savings goal. You can add those pre-tax contributions back to your net income to see the full picture, or simply aim for 20% of your take-home pay plus any employer matches.
Zero-Based Budgeting is a method where you give every single dollar a job. Your Income minus Expenses must equal Zero. This strictly allocates funds to spending, savings, and debt payoff, ensuring no money is left 'unassigned' or wasted. It's excellent for aggressive debt payoff or saving goals.
The Envelope System involves using physical cash envelopes for different spending categories (like Groceries, Dining Out). Once an envelope is empty, you stop spending in that category for the month. It's a powerful way to curve overspending and build discipline.
You should check your budget at least monthly. Review your spending against your plan at the end of each month to see where you overspent or underspent. Adjust your categories for the next month based on reality. Weekly check-ins can also help you stay on track mid-month.
Yes! In the 50/30/20 rule, the 20% category includes both savings (emergency fund, retirement) and *extra* debt payments (above the minimums). Minimum payments on debt are considered 'Needs' because you are contractually obligated to pay them.
For irregular expenses, you should set aside a small amount each month into a 'sinking fund'. For example, if you spend $600/year on car maintenance, budget $50/month. This prevents large bills from wrecking your monthly budget when they arise.