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Free tool
50/30/20 Budget Calculator
Enter your monthly take-home pay to split it into needs, wants and savings with the 50/30/20 rule, and compare it with what you spend. Free budget planner.
How to use the 50/30/20 Budget Calculator
- Enter your monthly take-home pay, the amount you receive after taxes.
- Pick a rule: the classic 50/30/20, or 60/20/20 or 70/20/10 if your housing costs are high.
- Optionally enter what you spend in each bucket to see where you are over or under target.
How the 50/30/20 rule works
The 50/30/20 rule splits your after-tax income into three parts: 50% for needs, 30% for wants and 20% for savings. On $4,000 a month that is $2,000 for needs, $1,200 for wants and $800 for savings, which adds up to $9,600 saved in a year.
| Take-home pay | Needs (50%) | Wants (30%) | Savings (20%) |
|---|---|---|---|
| $2,500 | $1,250 | $750 | $500 |
| $3,500 | $1,750 | $1,050 | $700 |
| $4,000 | $2,000 | $1,200 | $800 |
| $5,000 | $2,500 | $1,500 | $1,000 |
| $6,500 | $3,250 | $1,950 | $1,300 |
Needs, wants and savings
- Needs: rent or mortgage, groceries, utilities, insurance, minimum debt payments and transport to work.
- Wants: dining out, streaming, hobbies, shopping, trips and upgrades.
- Savings: an emergency fund, retirement contributions and extra debt payments.
When 50/30/20 does not fit
In expensive cities, housing alone can pass 50% of pay. Use the 60/20/20 or 70/20/10 setting, and treat it as a stepping stone while you work on income or housing costs. Start with a small emergency fund, such as one month of needs, before you chase the full 20%.
Winter bills can break a budget
Heating is the line that jumps in cold months. Check what a space heater costs to run before you lean on one, and use the furnace cost calculator to estimate your monthly heating fuel.
This tool gives a rule of thumb, not personal financial advice.
Frequently asked questions
What is the 50/30/20 budget rule?
It splits your after-tax income into 50% for needs, 30% for wants and 20% for savings and debt payoff. It was popularized by Elizabeth Warren and Amelia Warren Tyagi in their book All Your Worth.
What counts as a need and what counts as a want?
Needs are costs you must pay to live and work, such as rent, groceries, utilities, insurance, minimum debt payments and transport to work. Wants are choices, such as dining out, streaming, hobbies and trips.
Should I use gross or take-home pay?
Use take-home pay, the amount that reaches your bank account after taxes and payroll deductions. The rule works on money you can actually spend or save.
What if my needs are more than 50% of my income?
That is common where rent is high. Try the 60/20/20 or 70/20/10 option, cut wants first and look at your largest need, which is usually housing, for savings over time.
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