Finance

Budget 50/30/20 Calculator

Split after-tax income into needs, wants, and savings under the 50/30/20 rule.

The result splits the entered income into three amounts, so the needs amount covers essential spending, the wants amount covers optional spending, and the savings and debt amount is the part set aside for saving and repaying debt.

Formula

Needs get 50% of income, wants 30%, and savings and debt repayment 20%.

How it works

This is a guideline, not a law — high housing costs can push needs above 50%, and the point is the balance, not hitting each number exactly. Adjust the split to your situation and track where money actually goes.

Worked example

For example, with a monthly after-tax income of $4,000, needs get 50% of $4,000, which is $2,000, wants get 30%, which is $1,200, and savings and debt repayment get 20%, which is $800, and $2,000 plus $1,200 plus $800 equals $4,000.

FAQs

What counts as a need?
Housing, food, utilities, transport to work, insurance, and minimum debt payments.

What counts as a want?
Dining out, streaming, holidays, and upgrades beyond the basics.

What if needs exceed 50%?
That is common in expensive cities — trim wants first, then look at housing over time.

Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.

Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.

Related calculators

Annuity Payment Calculator

APR Estimate Calculator

Biweekly Mortgage Savings Calculator