50/30/20 Budget Calculator

The simplest way to start budgeting. Instantly calculate exactly how much you can afford to spend and save each month based on your take-home pay.

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After taxes, what hits your bank account each month?

50% Needs

The essentials: Rent, groceries, utilities, minimum debt payments.

$2,000

30% Wants

The fun stuff: Dining out, hobbies, subscriptions, shopping.

$1,200

20% Savings

Your future: Investments, emergency funds, extra debt payments.

$800

Visual Breakdown of your Income

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How to use this calculator

The 50/30/20 rule is a proportional budgeting plan that helps you divide your income into three clear categories, so you don't have to stress over tracking every single penny.

  1. Enter your take-home pay: This is your net income. Look at your paychecks and calculate how much hits your bank account every month after taxes, health insurance, and 401(k) contributions are deducted.
  2. Review your targets: The calculator instantly splits your cash into the three buckets: 50% Needs, 30% Wants, and 20% Savings/Debt.

Factors that affect your results

Defining "Needs" (50%)

These are bills that you absolutely must pay and are necessary for survival. These include your rent or mortgage, car payments, groceries, insurance, health care, minimum debt payments, and basic utilities.

Tip: Minimum debt payments belong here. Extra debt payments go into savings/debt.

Defining "Wants" (30%)

These are all the extras that make life enjoyable but aren't strictly necessary. This includes dining out, streaming subscriptions, vacations, shopping, grooming, and hobbies.

Tip: Internet might be a Need if you work from home, but the highest speed fiber package might be a Want.

Defining "Savings & Debt" (20%)

This bucket is for your future self. It includes building an emergency fund, putting money into a Roth IRA or brokerage account, and making extra payments on credit cards to clear them faster.

What to consider next

Now that you know your targets, print out your last 30 days of bank statements and see how your actual spending compares. Here is how to adjust:

  • Needs > 50%: If your housing or car payments are pushing your needs to 60% or 70%, you have to pull the difference from your Wants. You cannot pull it from Savings.
  • Aggressive Debt Payoff: If you are struggling with high interest credit cards, you can temporarily adopt a 50/10/40 budget. Live lean on Wants (10%) and throw double the normal amount (40%) at your debt using the Debt Payoff Calculator to see the impact.

Looking to build better financial habits? We highly recommend checking out some top-rated personal finance books to help you stay motivated.

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