Budget Calculator (50/30/20 Rule)
The 50/30/20 rule is the simplest way to budget: half your take-home pay for needs, 30% for wants, and 20% for savings and debt repayment. Enter your monthly income and minimum debt payments to see your split.
How to use this calculator
- Enter monthly take-home pay (after tax).
- Enter monthly minimum debt payments (credit cards, loans).
- Your results appear instantly below and update as you change the numbers.
How this calculator works
The calculator takes your monthly take-home (after-tax) income and applies the 50/30/20 rule: 50% to needs (housing, food, utilities, transport, insurance), 30% to wants (dining out, travel, subscriptions, shopping), and 20% to savings and debt repayment. Your minimum debt payments are subtracted from the 20% bucket, so the remaining figure is what you can genuinely save.
Frequently asked questions
What counts as a need vs a want?
Needs are the non-negotiable recurring costs of living — rent or mortgage, groceries, utilities, insurance, and minimum loan payments. Wants are the flexible extras: dining out, travel, subscriptions, hobbies, and shopping. The line is personal; the rule just forces you to draw it.
What if my debt payments exceed 20% of income?
Then you are over-budget on the savings-and-debt bucket, and the shortfall has to come out of wants — that is the point of the rule. If even cutting wants to zero isn't enough, your needs share is too high and the fix is structural: lower housing costs, raise income, or both.
Does 50/30/20 use gross or take-home pay?
Take-home (after-tax) pay. Taxes are already withheld, so budgeting against gross income double-counts them. If you have automatic deductions for health insurance or retirement, treat those as savings on top of the 20% bucket — or add them to your income figure if you want them included.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.