Budgeting
Budget Calculator
Calculate your ideal budget allocation using the 50/30/20 rule. Enter your monthly income and see exactly how much to spend on needs, wants, and savings.
Savings: 20% ($1,000/month)
Needs
$2,500
50% of income
Wants
$1,500
30% of income
Savings
$1,000
20%
Annual Breakdown
About the 50/30/20 Budget Rule
The 50/30/20 rule divides after-tax income into three buckets: 50% for essential needs (rent, utilities, groceries, minimum debt payments), 30% for lifestyle wants (dining, entertainment, subscriptions), and 20% for savings and extra debt payments. Adjust the sliders above to customize the percentages for your situation. Learn more about the 50/30/20 rule →
Questions, answered.
What is the 50/30/20 budget rule?
The 50/30/20 rule allocates 50% of after-tax income to needs (rent, groceries, utilities), 30% to wants (dining out, entertainment, subscriptions), and 20% to savings and debt repayment. It was popularized by Senator Elizabeth Warren in her book All Your Worth.
How do I calculate my monthly budget?
Start with your monthly take-home pay (after taxes). Multiply by 0.50 for your needs budget, 0.30 for wants, and 0.20 for savings. If your income varies, use your average over the past 3 months.
What counts as a 'need' vs a 'want'?
Needs are essential expenses you cannot avoid: rent or mortgage, utilities, groceries, minimum debt payments, and health insurance. Wants are lifestyle expenses you choose: restaurants, streaming services, gym memberships, and hobbies.
Can I adjust the budget percentages?
Yes. The 50/30/20 rule is a starting point, not a strict law. If you have high rent, you might need 60% for needs. If you're aggressively paying off debt, you might put 35% toward savings. Adjust the sliders in our calculator to match your goals.
How much should I save each month?
Financial experts recommend saving at least 20% of your income — 10–15% for retirement and 5–10% for an emergency fund and other goals. If 20% isn't possible, start with whatever you can and increase by 1% every few months.