50/30/20 budget calculator
Needs $900.00 a month · $10,800.00/year
Wants $540.00 a month · $6,480.00/year
Savings $360.00 a month · $4,320.00/year
The 50/30/20 rule is a rough guide: put 50% toward needs (housing, utilities, food), 30% toward wants (leisure, treats) and 20% toward savings and paying down debt. Adjust the percentages to fit your situation.
This 50/30/20 budget calculator splits your monthly net income between needs, wants and savings, with percentages you can adjust.
How the 50/30/20 rule works
It’s a simple way to organize your money by splitting your monthly net income into three big buckets:
- 50% to needs: housing, utilities, food, transport, insurance.
- 30% to wants: leisure, restaurants, subscriptions and treats.
- 20% to savings: emergency fund, investing and paying down debt.
When to adjust the percentages
It’s a guideline, not a rigid rule. If your rent already eats up more than 50%, adjust the percentages to fit your reality — what matters is consistently setting something aside for savings. You can edit all three percentages in the calculator above.
For guidance only. Not financial advice.
FAQ
What is the 50/30/20 rule?
It's a simple method for splitting your net income: 50% to needs, 30% to wants and 20% to savings and debt repayment. It was popularized by senator Elizabeth Warren as an easy way to organize personal finances.
What counts as a need and what counts as a want?
Needs are unavoidable expenses: housing, utilities, basic food, commuting or insurance. Wants are everything optional: leisure, restaurants, subscriptions, treats. If you could live without it, it's a want.
Gross or net income?
Net — the money you actually receive each month after taxes and social contributions. If you don't know your net figure, work it out first.