This budget calculator splits your monthly take-home pay into needs, wants and savings using the popular 50/30/20 rule or one of two variations. Enter what you spend now to see where you are over or under target.
The 50/30/20 budget rule
- 50% needs: rent or mortgage, utilities, groceries, insurance, transport to work, minimum debt payments, childcare.
- 30% wants: eating out, entertainment, travel, hobbies, subscriptions, shopping beyond essentials.
- 20% savings: emergency fund, retirement, investing and extra payments on debt.
Use your take-home pay, after tax and any workplace deductions. If you already save through payroll, such as a 401(k), you can count that in the savings share.
Worked example
With $5,000 of take-home pay, the 50/30/20 rule suggests $2,500 for needs, $1,500 for wants and $1,000 for savings. If you currently spend $2,800 on needs, $1,400 on wants and save $800, needs are $300 over target and savings are $200 short.
Which rule fits you?
| Rule | Best for |
|---|---|
| 50/30/20 | A balanced starting point for most people |
| 60/20/20 | High-rent cities where needs take more of your pay |
| 50/20/30 | Faster saving, paying off debt or early retirement goals |
Tips to make a budget stick
- Track spending for one month before setting targets.
- Pay yourself first: move savings out on payday automatically.
- Review subscriptions and recurring bills every few months.
Frequently asked questions
What is the 50/30/20 rule?
A simple budget guideline: spend about 50% of take-home pay on needs, 30% on wants and put 20% toward savings and extra debt payments.
Should I use gross or net income?
Use net (take-home) income, the amount that actually reaches your bank account after taxes and deductions.
Are debt payments needs or savings?
Minimum required payments are needs. Anything extra you pay to clear debt faster counts toward the savings share.
What if my needs are more than 50%?
That is common where housing is expensive. Try the 60/20/20 rule, look for savings on big fixed costs such as housing and transport, and keep the savings share as high as you can.
How much should I have in an emergency fund?
A common target is three to six months of essential expenses. Build it before investing heavily.
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Last reviewed: October 2026. This calculator is for education only and is not financial, tax or legal advice.