Budget Calculator (50/30/20)
Split monthly take-home pay into needs, wants and savings, and compare your actual spending against the targets.
Monthly budget
$5,000.00
Take-home pay to split
- Needs (50%)$2,500.0050%
- Wants (30%)$1,500.0030%
- Savings (20%)$1,000.0020%
Needs target
$2,500.00
housing, utilities, groceries, transport, insurance, minimum debt payments
Wants target
$1,500.00
dining out, entertainment, travel, subscriptions
Savings target
$1,000.00
Savings and extra debt payments
How this is calculated
Take-home income
Monthly pay after tax and payroll deductions.
$5,000.00
Needs (50%)
Target for this category.
$2,500.00
Wants (30%)
Target for this category.
$1,500.00
Savings (20%)
Target for this category.
$1,000.00
Assumptions
- The 50/30/20 split is a starting point, not a rule. High-cost cities often need more than 50% for needs.
Paying down debt? Compare avalanche and snowball.
Worked examples
50/30/20 split of monthly take-home pay.
| Take-home | Needs (50%) | Wants (30%) | Savings (20%) |
|---|---|---|---|
| $4,000 | $2,000 | $1,200 | $800 |
| $6,000 | $3,000 | $1,800 | $1,200 |
| $8,500 | $4,250 | $2,550 | $1,700 |
Frequently asked questions
What is the 50/30/20 rule?
Spend about 50% of take-home pay on needs, 30% on wants and put 20% toward savings and extra debt payments.
What counts as a need?
Housing, utilities, groceries, transportation, insurance, childcare and minimum debt payments: what you'd still have to pay if you cut everything optional.
Is the budget based on gross or net income?
Net (take-home) income. On $4,000 a month, the targets are $2,000, $1,200, $800.
Estimates for information only; not tax, legal or financial advice. See our methodology.