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50/30/20 Budget Calculator
Enter your monthly income after tax. The calculator divides it using the 50/30/20 rule, and you can change the percentages to fit your situation.
| Category | Per month | Per year |
|---|---|---|
| Needs | $2,000 | $24,000 |
| Wants | $1,200 | $14,400 |
| Savings and debt | $800 | $9,600 |
Example
On $4,000 a month, the 50/30/20 rule gives $2,000 for needs, $1,200 for wants and $800 for savings and debt repayment.
How the 50/30/20 budget calculator works
The 50/30/20 rule divides take-home pay into three parts: 50% for needs, 30% for wants and 20% for savings and extra debt repayment.
Needs are costs you cannot avoid, such as housing, food, utilities, transport, insurance and minimum debt payments. Wants are everything you choose to spend on. The last part builds savings and pays debt down faster.
The percentages are a starting point. Where housing is expensive, needs can easily take 60% or more. Change the numbers above and whatever is left goes to savings.
Common questions
Should I use income before or after tax?
After tax. Use the amount that reaches your bank account. If pension contributions are taken from your pay, you can count them as part of your savings.
What if my needs are more than 50%?
That is common. Set the needs percentage to your real figure and see what is left. Then look for the largest costs you can change over time, which are usually housing and transport.
Do debt payments count as needs or savings?
Minimum payments are needs, because you must make them. Anything you pay above the minimum counts with savings.