Budget Calculator
Enter your monthly take-home pay and your actual costs line by line to see how your needs, wants and savings compare with the 50/30/20 rule, what's left over or short, and how big your emergency fund should be.
Budget calculator
Needs
Wants
Savings and debt payoff
The 50/30/20 budget rule
The 50/30/20 rule, popularized by Elizabeth Warren and Amelia Warren Tyagi in All Your Worth (2005), splits take-home pay: about 50% for needs (housing, utilities, groceries, insurance, transportation, minimum debt payments), 30% for wants, and 20% for savings and extra debt payoff. It is a starting point, not a law: in high-rent cities needs often run 60% or more, so the calculator shows exactly where your money goes against the benchmark.
Example: on $5,000 a month take-home, the default budget has needs of $3,100 (62%), wants of $750 (15%) and savings of $400 (8%), leaving $750 unassigned. The 50/30/20 targets would be $2,500, $1,500 and $1,000, so this budget is $600 over on needs and $600 short on savings.
Monthly budget calculator: start from take-home pay
Use your net pay (what lands in your bank account) after taxes, health premiums and payroll retirement contributions. If you only know your salary, find your take-home pay with the bring home pay calculator first. Irregular costs (car repairs, gifts, annual insurance premiums) belong in the budget as a monthly average: divide the yearly amount by 12.
50/30/20 vs. zero-based budgeting
50/30/20 sets three totals; a zero-based budget assigns every dollar of income to a line until income minus spending equals zero. The calculator does both: the table compares you with 50/30/20, and the "left over" figure is what still needs a job under zero-based budgeting.
How big should your emergency fund be?
A common rule of thumb is three to six months of essential expenses. With $3,100 a month of needs that is $9,300 to $18,600. Build it in a federally insured savings account before investing extra money.
Common questions
What is the 50/30/20 rule?
Spend about 50% of take-home pay on needs, 30% on wants and 20% on savings and extra debt payments.
Is the 50/30/20 rule based on gross or net income?
Net (take-home) pay, after taxes and payroll deductions.
How much should I spend on rent?
Under 50/30/20, rent plus your other needs should fit in about half of take-home pay; a common rule of thumb also keeps rent near 30% of gross income.
What if my needs are more than 50%?
Trim wants and savings temporarily, and look at the biggest fixed costs (housing, car payment) for longer-term savings.
Sources
More savings and interest calculators: Virginia529 · 529 Calculator · CAGR Calculator · CD Calculator
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.