50/30/20 Budget Calculator

Budget with the 50/30/20 rule

The 50/30/20 rule is a simple, popular framework for managing money. It suggests dividing your after-tax income into three buckets: fifty percent for needs, thirty percent for wants, and twenty percent for savings and debt repayment. This calculator splits your monthly take-home pay into those amounts instantly and shows your annual savings target. Needs are essentials you cannot avoid, such as housing, utilities, groceries and minimum debt payments. Wants are lifestyle spending like dining out, subscriptions and hobbies. The final twenty percent builds your financial future through saving, investing and paying down debt faster.

Using after-tax income is key, since the rule is about allocating the money that actually reaches your account.

Making the rule work

The appeal of the 50/30/20 rule is its simplicity: it gives clear targets without tracking every transaction. It is a starting point rather than a strict law, and you can adjust the percentages to fit your circumstances. People in high-cost areas may need more than half for needs, while those aiming for early financial independence often push savings well above twenty percent.

Reviewing your actual spending against these targets quickly reveals where money is leaking, most often in the wants category. All calculation happens locally in your browser.

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