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50/30/20 Budget Calculator
Enter your monthly take-home pay (after tax) to split it into the classic 50/30/20 budget: 50% for needs, 30% for wants and 20% for savings and debt repayment. You can also enter what you actually spend to see how close you are, and adjust the percentages if the standard split doesn't fit your life.
Optional: what you actually spend now
Runs entirely in your browser. Nothing you type is sent or stored.
What is the 50/30/20 rule?
The 50/30/20 rule is a simple way to divide your after-tax income into three buckets. It was popularised as a starting point for people who want a budget without tracking dozens of categories. Instead of planning every line item, you only need to keep three totals in balance.
- Needs (50%): costs you must pay to live and work: rent or mortgage, utilities, groceries, insurance, transport to work, minimum debt payments and childcare.
- Wants (30%): things that make life enjoyable but you could cut if you had to: dining out, streaming, hobbies, travel, upgrades and most shopping.
- Savings and debt (20%): building an emergency fund, retirement contributions, saving for goals, and paying debt above the minimum.
How to use this calculator
Start with your take-home pay: the amount that actually lands in your bank account each month after taxes and payroll deductions. If you are paid biweekly, multiply one paycheck by 26 and divide by 12 for a fair monthly figure. If your income varies, use a cautious average of the last few months.
The calculator shows the target amount for each bucket. If you fill in your current spending, it also shows whether each bucket is over or under target. Being over on needs is common in high-cost cities. That is a signal to look at the biggest fixed costs, not a failure.
Adjusting the percentages
The 50/30/20 split is a guideline, not a law. If housing takes a larger share where you live, a 60/20/20 or 60/25/15 split may be more realistic. If you are aggressively paying down debt or saving for a house, you might choose 50/20/30. Change the percentages in the calculator; it warns you if they don't add up to 100%.
The most important number is usually the savings bucket. Even if you can't hit 20% today, picking a percentage and automating a transfer on payday turns it into a habit. Increase it by one or two percentage points each time you get a raise.
Common mistakes
- Using gross salary. The rule is based on take-home pay, so using your pre-tax salary makes every bucket look bigger than it really is.
- Counting wants as needs. A phone plan is a need; the most expensive plan may be partly a want. Be honest when you sort.
- Forgetting irregular costs. Annual subscriptions, car repairs and gifts belong in the budget too. Divide them by 12 and include them monthly.
- Not tracking at all. A target only helps if you compare it with real spending at least once a month.
To budget by paycheck instead of by month, see our guide How to Budget Biweekly Pay.
Want this as a spreadsheet you can keep?
The Monthly Budget Tracker spreadsheet lets you set category budgets once, log expenses with dropdowns, and see spent, remaining and % used update automatically, month after month.
Get the Monthly Budget TrackerWorks in Excel and Google Sheets · instant download via Gumroad
FAQ
Is the 50/30/20 rule based on gross or net income?
It is based on net (take-home) income, the amount you receive after taxes and payroll deductions.
Where do debt payments go in 50/30/20?
Minimum payments are usually counted as needs. Any extra payment above the minimum goes in the 20% savings and debt bucket.
What if my needs are more than 50%?
That is common in expensive areas. Adjust the split (for example 60/20/20), then look for savings in the largest fixed costs over time.
Does this tool save my numbers?
No. Everything is calculated in your browser and nothing is stored or sent.
This calculator is for general education and planning only. It is not financial, tax or legal advice. Check important decisions with a qualified professional.