Monthly Budget Calculator with the 50/30/20 Rule

Build a monthly budget with your own categories and compare it with the 50/30/20 rule for needs, wants, and savings. Free, private, and runs in your browser.

What is the 50/30/20 rule?

The 50/30/20 rule is a simple way to divide your after-tax income. It was popularized by Elizabeth Warren and Amelia Warren Tyagi in their book All Your Worth. The idea: spend about 50% on needs, 30% on wants, and put 20% toward savings and paying down debt. It's not a law of nature, but it's a useful yardstick for spotting where a budget is out of balance.

Needs, wants, and savings — what goes where

Needs are expenses you'd struggle to cut without real hardship: housing, utilities, basic groceries, insurance, transportation to work, childcare, and the minimum payments on your debts. Wants are things that make life better but could shrink in a pinch: restaurants, streaming services, travel, hobbies, upgrades. Savings and debt covers your emergency fund, retirement contributions you make yourself, investing, and any payments above the minimum on your debts.

The line between categories is personal. A phone plan is a need; the newest phone is probably a want. Classify honestly — the point is to see your real pattern, not to make the numbers look good.

How to use this calculator

Enter your monthly take-home pay — what actually lands in your bank account after taxes and payroll deductions. If your income varies, use a conservative average of the last few months. Then edit, add, or remove categories so they match your life, and mark each one as a need, a want, or savings. The calculator totals each group, compares it with the 50/30/20 targets, and tells you how much income is still unassigned or how far over you are.

What to do if your numbers don't fit

In high-cost cities, housing alone can take 40% or more of take-home pay, so needs above 50% are common. That doesn't mean your budget is broken; it means the other groups need to flex. Some people use 60/20/20 or 70/20/10 for a while. The most important number is usually the last one: are you saving something every month, even if it's less than 20%?

If you're over budget, start with wants, since they're easiest to adjust. Then look at the biggest needs — a cheaper insurance quote, a phone plan review, or a different commute can free up more than cutting many small treats. If you have money left over, give it a job right away: an emergency fund first, then extra debt payments or long-term savings.

Make it a habit

A budget works best as a monthly routine rather than a one-time exercise. At the start of each month, update your income and planned amounts. At the end, compare plans with what you actually spent. Over a few months you'll see which categories regularly run over, and you can set more realistic targets.

Estimates only, not financial advice. Results assume a fixed interest rate, payments made on time each month, no new charges or fees, and interest compounded monthly. Your lender's actual figures may differ. See our disclaimer.

Frequently asked questions