50/30/20 Budget Calculator
Enter your income. See your budget. Then find out if your real spending matches up.
Your take-home pay after taxes and deductions.
What goes where?
Needs (50%)
Wants (30%)
Savings (20%)
Frequently Asked Questions
What is the 50/30/20 rule?
The 50/30/20 rule is a budgeting guideline that suggests dividing your after-tax income into three categories: 50% for needs (housing, groceries, utilities, insurance), 30% for wants (dining out, entertainment, subscriptions), and 20% for savings and debt repayment (emergency fund, investments, extra debt payments).
Is the 50/30/20 rule realistic?
The 50/30/20 rule works well as a starting framework, but it may need adjusting based on your situation. People in high cost-of-living areas may need to allocate more than 50% to needs, while those with aggressive financial goals might want to increase their savings percentage beyond 20%. The key is to use it as a baseline and customize it to your circumstances.
Should I use pre-tax or after-tax income?
The 50/30/20 rule is designed to be used with your after-tax (take-home) income. This is the amount that actually hits your bank account after federal, state, and local taxes, as well as any pre-tax deductions like health insurance or retirement contributions, have been subtracted.
What if I can't hit 20% savings?
If saving 20% feels out of reach, start with whatever you can and work your way up. Even saving 5% or 10% is better than nothing. Focus on reducing needs costs where possible (refinancing, downsizing, switching providers) and gradually shift money from wants to savings as your income grows or expenses decrease.
How does the 50/30/20 rule work with irregular income?
For irregular income, calculate your average monthly income over the past 6 to 12 months and use that as your baseline. In months where you earn more, put the extra toward savings. In leaner months, focus on covering needs first, then allocate what remains between wants and savings.
