Budget Calculator (50/30/20)
Create a balanced budget using the popular 50/30/20 rule. Enter your income and instantly see how much to allocate for needs (50%), wants (30%), and savings (20%). Customize percentages for your situation.
Your Income
Your Budget Breakdown
50% - Essential expenses
30% - Discretionary spending
20% - Financial goals
Category Details
Pro Tips
- •If you can't hit 20% savings, start with what you can and increase gradually
- •Housing should ideally be under 28% of gross income
- •Adjust percentages based on your goals (e.g., 50/20/30 for aggressive saving)
Annual Summary
Annual Income
$60,000
Needs/per year
$30,000
Wants/per year
$18,000
Savings & Debt/per year
$12,000
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How to Use
- 1 Enter your income — Input your monthly or annual income. Choose whether it's before or after taxes for more accurate calculations.
- 2 View your breakdown — Instantly see how much should go to Needs (50%), Wants (30%), and Savings (20%) based on your income.
- 3 Explore category details — See specific recommendations for each category, like housing should be around 28% of income within the Needs category.
- 4 Customize if needed — Click 'Customize' to adjust percentages for your situation. Aggressive savers might use 50/20/30 instead.
- 5 Apply the tips — Use the pro tips section to optimize your budget and reach your financial goals faster.
Frequently Asked Questions
What is the 50/30/20 budget rule?
The 50/30/20 rule divides your after-tax income into three categories: 50% for needs (housing, utilities, groceries), 30% for wants (entertainment, dining out), and 20% for savings and debt payoff.
What expenses count as 'needs' vs 'wants'?
Needs are essential expenses you can't avoid: rent/mortgage, utilities, groceries, transportation, insurance, and minimum debt payments. Wants are discretionary: dining out, streaming services, shopping, vacations.
What if I can't save 20% of my income?
Start with what you can - even 5% or 10% is better than nothing. Focus on reducing high-interest debt first, then gradually increase your savings rate as you pay off debts or increase income.
Should I use gross or net income?
Most experts recommend using net (after-tax) income since that's what you actually have to spend. However, if you contribute to a 401(k) pre-tax, you might count that as part of your 20% savings.