50/30/20 Budget Calculator

The simplest budgeting rule: 50% needs, 30% wants, 20% savings.

How to use this calculator

Enter your after-tax monthly income, then press Calculate. It splits your budget into needs (50%), wants (30%) and savings (20%) with a chart.

What the result means

The rule gives every dollar a job. If your needs exceed 50%, the difference should come from wants before savings — the order matters.

How the 50/30/20 split works

The rule divides your after-tax income three ways: 50% for needs (housing, food, transport, minimum debt payments), 30% for wants (dining, entertainment, subscriptions), and 20% for savings and extra debt payoff. It is a starting framework, not a law - adjust the percentages to your life once you see the baseline.

Worked example

On $4,000 a month after tax, the plan is $2,000 for needs, $1,200 for wants, and $800 saved. If rent alone takes $1,600, your needs bucket is already at 40% - a clear signal that housing is too heavy unless wants shrink.

What counts where

• Needs: rent/mortgage, utilities, groceries, insurance, minimum loan payments.
• Wants: dining out, travel, streaming, hobbies.
• Savings: retirement contributions, emergency fund, any payment above the minimum on debt.

Frequently asked questions

What counts as a need?

Housing, food, utilities, transport and minimum debt payments. Everything else is a want.

What if my needs are over 50%?

That's common in high-cost areas. Trim wants first, and treat savings as a non-negotiable 20% if you can.

My needs are over 50% - what do I do?

That is common in high-cost cities. Cut wants to buy room, but the honest long-term fix is either higher income or lower fixed costs like housing.