Budget Calculator (50/30/20)
Split your monthly take-home pay into needs, wants, and savings.
Estimates for educational purposes only — not financial, tax, or investment advice.
What the 50/30/20 rule is
The 50/30/20 rule is a simple budgeting framework: spend about 50% of your after-tax income on needs (housing, food, utilities, minimum debt payments), 30% on wants (dining out, hobbies, subscriptions), and put 20% toward savings and extra debt payoff. It's popular because it's easy to remember and flexible.
How to adjust it to your life
The percentages are a starting point, not a law. In high-cost cities, needs often run above 50% — so trim wants rather than savings. If you're paying down high-interest debt, push the savings bucket higher for a while. The goal is a plan you can actually stick to month after month.
Frequently asked questions
Should I use gross or take-home pay?
Use take-home (after-tax) pay. The 50/30/20 split is designed around the money that actually lands in your account.
What counts as a 'need'?
Essentials you can't easily skip: rent or mortgage, groceries, utilities, insurance, transportation to work, and minimum debt payments.