Budget Calculator
Use this budget calculator to see where your monthly take-home pay goes. Enter your income and spending, and it sorts every dollar into needs, wants and savings, shows each as a percentage of income and compares them with the 50/30/20 rule. You also see what's left at the end of the month, or how far you're short.
Updated
Results
- Needs
- Wants
- Savings
- Needs, share of income50/30/20 target: 50%
- Wants, share of income50/30/20 target: 30%
- Savings, share of income50/30/20 target: 20%
- Needs target (50%)
- Wants target (30%)
- Savings target (20%)
- Budget status
Results are estimates. See the methodology below.
How to use the calculator
- Monthly take-home pay: what lands in your account after taxes and payroll deductions, plus any other regular income.
- Needs: rent or mortgage, utilities, groceries, transportation, insurance and the minimum payments on your debts.
- Wants: dining out and entertainment, shopping, subscriptions and anything else you could cut if you had to.
- Savings: what you set aside each month for emergencies, goals or retirement.
For bills that come once or twice a year, such as car insurance, divide the yearly cost by 12. Your bank and card statements from the last few months are the most reliable starting point.
How the calculator works
- Needs = housing + utilities + groceries + transportation + insurance + minimum debt payments.
- Wants = dining and entertainment + shopping + subscriptions + other.
- Savings = the amount you enter.
- Left over = take-home pay − needs − wants − savings.
Each group is also shown as a percentage of take-home pay, next to the 50/30/20 targets: 50% for needs, 30% for wants and 20% for savings. The status reads surplus when money is left over, balanced when every dollar is assigned and deficit when you plan to spend more than you earn.
The 50/30/20 split was popularized by Elizabeth Warren and her daughter Amelia Warren Tyagi in their 2005 book All Your Worth. It's a rule of thumb, not an official standard.
Worked examples
1. $4,000 take-home pay
Rent $1,300, utilities $200, groceries $500, transportation $350, insurance $150 and debt payments $200 make needs of $2,700 (67.5%). Wants total $610 (15.3%) and savings $400 (10.0%), leaving $290. The 50/30/20 targets would be $2,000, $1,200 and $800: needs are $700 over, mostly because of rent, while wants are well under.
2. $3,900 with no debt
Needs of $2,300 (59.0%), wants of $605 (15.5%) and savings of $600 (15.4%) leave $395. Moving that $395 into savings brings savings to $995, or 25.5% of income, above the $780 target, and the status changes to balanced.
3. A monthly deficit
On $3,200, needs of $2,950 take 92.2% of income. With $480 of wants and nothing saved, the result is −$230: a deficit that ends up on a credit card or comes out of savings.
How to read your results
Look at the leftover amount first: a deficit needs fixing before any percentage matters. Then compare each group with its target. Needs above 50% are common where housing is expensive; the useful question is whether you can still save something every month. Assigning the leftover on purpose, to savings or to paying down a debt faster, keeps it from drifting into wants.
Frequently asked questions
What is the 50/30/20 rule?
It suggests spending about 50% of your after-tax income on needs, 30% on wants and putting 20% toward savings. It gives you a quick benchmark, not a requirement.
Should I use gross or net income?
Use net income, your take-home pay. The 50/30/20 percentages are meant for after-tax money, and that's the money you actually spend. If you contribute to a 401(k) through payroll, you can add those contributions to savings so they count.
Where do debt payments go?
Minimum payments on credit cards, student loans and car loans are needs: missing them has consequences. Anything you pay above the minimum is your choice, and you can enter it under savings to see it in that column.
How big should my emergency fund be?
The CFPB says the right amount depends on your situation. A practical way to set a goal is to look at what your recent unexpected expenses cost, start small and save automatically with a recurring transfer to a savings account.
What if my income changes from month to month?
Budget on a cautious month rather than an average or a good one. In months when you earn more, move the extra to savings so it can cover the lean months.
What can I do about a deficit?
Start with wants, since they're the easiest to cut, then review recurring bills such as subscriptions, phone plans and insurance. Also check the timing of bills against paydays: a gap there can cause overdrafts even when the month balances.
Sources
This calculator is a planning aid for educational purposes only and is not financial advice. The 50/30/20 split is a general guideline that may not fit every household.