Monthly Budget Calculator (50/30/20)
The 50/30/20 rule splits your after-tax income into needs (50%), wants (30%) and savings (20%). Add your expenses below to see how your real spending compares, or set your own split.
How this calculator works
Each bucket's target is your income multiplied by its share:
- Needs = income × 50% (rent, food, bills, transport, insurance, minimum debt payments)
- Wants = income × 30% (eating out, hobbies, subscriptions, travel)
- Savings = income × 20% (emergency fund, investing, extra debt payments)
Difference = target − actual spending in that bucket. A negative number means you are over budget in that bucket.
Worked example
Ali earns 3,000 a month after tax. His targets are 1,500 for needs, 900 for wants and 600 for savings.
- He spends 1,600 on needs → 100 over
- He spends 1,000 on wants → 100 over
- He saves 300 → 300 under his savings target
Cutting 200 from wants (for example, fewer takeaways) would bring him close to his savings goal.
Frequently asked questions
Does 50/30/20 work with irregular freelance income?
Yes, if you budget from a steady "safe salary" rather than each month's actual income. Use the Irregular Income Planner to find that number first.
Is rent a need or a want?
Basic housing is a need. If you pay a lot more than you must for location or size, you can count the extra as a want.
Where do debt payments go?
Minimum payments are needs. Anything you pay above the minimum counts as savings, because it improves your net worth.
What if my needs are more than 50%?
That is common in expensive cities. Use the custom split, for example 60/20/20, and look for ways to bring needs down over time.
Should business expenses be in this budget?
No. Keep business costs separate. Use your personal take-home pay (after tax and business costs) as the income here.
Related guides
Results are estimates for general education, not financial advice. Disclaimer.