50/30/20 Budget Calculator
Enter your monthly take-home (after-tax) income to see how it breaks down under the popular 50/30/20 budgeting rule — 50% needs, 30% wants, 20% savings and debt repayment.
How the Budget (50/30/20) formula works
A simple three-way split:
Needs = Income × 0.50 Wants = Income × 0.30 Savings/debt repayment = Income × 0.20
Step-by-step calculation
- Multiply your monthly take-home income by 50% for your needs budget (housing, groceries, utilities, minimum debt payments).
- Multiply by 30% for your wants budget (dining out, entertainment, subscriptions).
- Multiply by 20% for savings and any extra debt repayment beyond the minimums.
Worked example
A $4,500/month take-home income: Needs = $2,250. Wants = $1,350. Savings/debt = $900.
Frequently asked questions
Is 50/30/20 the right split for everyone?
It's a popular starting framework, not a strict rule — high cost-of-living areas often push 'needs' well above 50%, while aggressive savers might flip more toward the savings category. Treat it as a baseline to adjust to your situation.
What counts as a 'need' versus a 'want'?
Needs are typically non-negotiable essentials: housing, groceries, utilities, insurance, minimum debt payments, and basic transportation. Wants cover everything more discretionary — dining out, entertainment, hobbies, non-essential subscriptions and shopping.