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50/30/20 Budget Calculator

Your 50/30/20 Budget
Savings and Debt
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Our 50/30/20 budget calculator uses the 50/30/20 budget strategy to suggest how much of your monthly income to allocate to needs, wants, and savings.

What is the 50/30/20 budget?

The 50/30/20 rule is one of the most popular budgeting methods that splits your monthly income among three main categories. Here's how it breaks down.

Monthly after-tax income

This figure is your income after deducting your taxes. You'll likely have additional payroll deductions for 401(k) contributions, health insurance, or other automatic payments taken from your salary. Do not subtract those from your gross income.

Needs: 50% of your income.

Your needs are the expenses you can't avoid. This portion of your budget should cover required costs such as:

  • Food.
  • Housing.
  • Transportation.
  • Insurance.
  • Basic utilities.
  • Minimum loan payments. Anything beyond the minimum goes into the savings and debt repayment bucket.
  • Child care or other expenses that need to be covered so you can work.

Wants: 30% of your income

Distinguishing between needs and wants isn't always easy and can vary from one budget to another. Generally, wants are the extras that aren't essential to living and working. They're often for fun and may include:

  • Monthly subscriptions.
  • Travel.
  • Entertainment.
  • Meals out.

Savings and debt: 20% of your income

Savings is the amount you sock away to prepare for the future. Devote this chunk of your income to paying down existing debt and creating a financial cushion.

Using this part of your budget depends on your situation, but it will likely include.

  • Starting an emergency fun
  • Saving for retirement through a 401(k) and an individual retirement account.
  • Paying off debt, beginning with high-interest accounts like credit cards.
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How to use our 50/30/20 budget calculator

Follow these 3 simple steps to use our 50/30/20 budget calculator

  1. Input your monthly income in the provided field
  2. Click on calculate and watch this result display in the box below it
  3. Click Reset to reset the values

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