Use this free budget calculator to split your monthly after-tax income using the simple 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings and extra debt payoff. Enter your income and your real spending below and instantly see your targets, what you are spending over or under target in each category, and how much money is left at the end of the month.
Current as of November 2026. All calculations are estimates for planning only — see the disclaimer at the bottom of this page.
Tip: use your take-home pay — the amount that actually lands in your bank account after tax, not your gross salary. If you are paid weekly, multiply your weekly take-home pay by 4.33.
Needs total: $2,500
Wants total: $1,500
Wants are the fun extras — things you enjoy but could live without. A daily coffee, a holiday, and a new phone all count here.
Savings total: $1,000
Extra payments above your minimum debt payments go here, not in Needs. Paying extra on a high-interest card or loan is a form of saving.
| Category | 50/30/20 Target | Your Actual | Over / Under Target | Your % |
|---|---|---|---|---|
| Needs (50%) | $2,500 | $2,500 | On target | 50% |
| Wants (30%) | $1,500 | $1,500 | On target | 30% |
| Savings & debt payoff (20%) | $1,000 | $1,000 | On target | 20% |
Perfect balance! Your spending matches the 50/30/20 rule exactly — $2,500 on needs, $1,500 on wants and $1,000 on savings, with $0 left over.
Chart shows your actual spending as a share of your income. Green = needs, amber = wants, blue = savings & extra debt payoff. If one bar is much wider than its 50/30/20 target, that is the category to look at first.
Take-home pay: $5,000 per month. The 50/30/20 targets are:
One way to spend it: rent $1,400 + utilities $200 + groceries $450 + transport $250 + insurance $150 + minimum debt payments $50 = $2,500 needs; dining out $400 + entertainment $250 + subscriptions $100 + shopping $750 = $1,500 wants; and $1,000 to savings. Total $5,000, with $0 left over — exactly on target. This is the example pre-loaded in the calculator above, so you can press Calculate and see it live, then change any number to your own.
If your needs are over 50% — very common with high rent — do not panic. First trim wants, then look for one big needs saving (cheaper phone plan, lower grocery bill, refinancing a loan) rather than cutting ten tiny things at once.
1. Enter your after-tax income. Use the slider or type your monthly take-home pay. This is the only number the 50/30/20 percentages are based on.
2. Add up your needs. Needs are the bills you must pay to live and work: rent or mortgage, utilities, groceries, transport, insurance, and minimum debt payments. The rule says these should be about 50% of your income.
3. Add up your wants. Wants are the enjoyable extras: eating out, entertainment, subscriptions, holidays, and shopping beyond the basics. The rule allows about 30% here.
4. Add your savings and extra debt payoff. Savings, investing, an emergency fund, and any payment above your minimum debt payment should be about 20% of your income.
5. Compare target vs actual. The calculator shows each target in dollars, your actual total, and how much you are over or under target. It also shows your money left over — income minus everything you planned to spend. If that number is negative, your plan spends more than you earn, and something needs to come down.
The 50/30/20 rule comes from the book All Your Worth by Elizabeth Warren and Amelia Warren Tyagi. It is a starting point, not a law: in an expensive city your needs may be 60%, and that is fine if you adjust wants down and protect at least some savings. The goal is a plan you can actually stick to, month after month.
The 50/30/20 rule splits your after-tax income into three buckets: 50% for needs (rent, bills, groceries, transport, insurance, minimum debt payments), 30% for wants (dining out, entertainment, subscriptions, shopping), and 20% for savings and extra debt payoff. It is a simple starting point for a monthly budget.
Always use take-home (after-tax) pay — the amount that reaches your bank account. The 50/30/20 percentages were designed for after-tax income. Using gross pay makes every target too high and hides the tax you have already paid.
A need is something you must pay to live and work: housing, utilities, basic groceries, transport to work, insurance, and minimum loan payments. A want is anything you could cut without losing your home, job, or health: eating out, streaming, holidays, a new phone, or a gym upgrade. Groceries are a need; a takeaway is a want. A basic phone plan is a need; the latest handset is a want.
That is very common, especially with high rent. Do not try to force 50% overnight. First cut wants toward 20%, keep at least 10% for savings if you can, and work on the biggest need — usually housing, transport, or food. A smaller cut to one big bill beats ten tiny cuts you will not keep up.
Minimum debt payments are needs, because you must pay them. Any payment above the minimum is savings and debt payoff (the 20% bucket), because it builds your wealth by cutting future interest. Paying off a high-interest credit card early is usually the best first use of the 20% bucket, before investing.
The rule suggests 20% of after-tax income. If that is out of reach right now, start with any fixed amount — even 5% — and raise it by 1% each time your pay rises. First build a small emergency fund (one month of expenses), then pay down expensive debt, then invest for the long term.
This calculator gives estimates for planning and education only. It is not financial advice, and it does not take account of your taxes, benefits, debts, or personal circumstances in full. Figures are rounded to the nearest dollar and percentages to the nearest whole percent. Talk to a qualified financial adviser before making major money decisions. Current as of November 2026.
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