50/30/20 Budget Calculator

The 50/30/20 Budget

Find out how this budgeting approach applies to your money.

How the 50/30/20 Budget Calculator Works

This calculator helps you plan your monthly and annual budget using the 50/30/20 rule.
Here’s how to use it:

Enter your monthly after-tax income

  • Input the amount of money you receive each month, after all taxes and deductions.

Click the “Calculate” button

The calculator will automatically divide your income into three categories, according to the 50/30/20 rule:

  • 50% for Needs: Essential expenses you can’t avoid (e.g., housing, food, transportation, utilities, insurance, minimum loan payments).
  • 30% for Wants: Non-essential expenses for things you enjoy (e.g., dining out, entertainment, travel, shopping, subscriptions).
  • 20% for Savings and Debt Repayment: Money you set aside for savings, investments, or paying down debt above the minimum.

See your results

  • The calculator shows both monthly and annual amounts for each category (Needs, Wants, Savings/Debt).
  • Use these numbers as a guideline for managing your finances and adjusting your spending.

Example

If your monthly after-tax income is $3,000:

  • Needs (50%): $1,500/month ($18,000/year)

  • Wants (30%): $900/month ($10,800/year)

  • Savings and Debt Repayment (20%): $600/month ($7,200/year)

Tip:
The 50/30/20 rule is a starting point. You can adjust the percentages to fit your personal financial situation!