The 50/30/20 rule is one of the simplest ways to build a budget: about 50% of take-home pay for needs, 30% for wants and 20% for savings and extra debt payments. Enter your monthly take-home pay to see your targets, adjust the percentages if your situation is different, and compare them with what you really spend.
50/30/20 Budget Calculator
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What counts as needs, wants and savings?
- Needs: rent or mortgage, utilities, groceries, insurance, transportation to work and minimum debt payments.
- Wants: dining out, entertainment, travel, hobbies and most subscriptions.
- Savings and debt: emergency fund, retirement contributions beyond payroll, investing and payments above the minimum on debt.
If you live in a high-cost area, needs may take 60% or more. That’s fine; shrink wants first and protect your savings rate.
Related: The 50/30/20 Rule Explained, Take-Home Pay Calculator, Emergency Fund Calculator, How to Make a Budget, All Financial Calculators.