50/30/20 Budget Calculator

Split your take-home pay into needs, wants and savings with the 50/30/20 rule (or your own split) and compare it with what you actually spend. Free, no login.

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What is the 50/30/20 rule?

The 50/30/20 rule splits your monthly take-home pay into three buckets: 50% for needs, 30% for wants and 20% for savings and extra debt payments. Senator Elizabeth Warren and Amelia Warren Tyagi popularized it in their 2005 book All Your Worth. It is popular because you only track three numbers instead of dozens of categories.

The formula

Needs target = take-home pay × 50%
Wants target = take-home pay × 30%
Savings & debt target = take-home pay × 20%
Difference = target − what you actually spend. A negative number means you are over budget in that bucket.
Left to assign = take-home pay − needs − wants − savings. Give every remaining dollar a job.

You can change the percentages. 60/20/20 or 60/30/10 are common in high-cost cities. The calculator warns you if your split doesn't add up to 100%.

What goes in each bucket

Needs (50%): rent or mortgage, utilities, groceries, insurance, transportation to work, childcare, and the minimum payment on every debt. If you would still pay it after losing your job, it is a need.
Wants (30%): dining out, streaming and subscriptions, hobbies, travel, upgrades beyond the basic version (the bigger apartment, the newer car).
Savings & debt (20%): emergency fund, retirement contributions you make yourself, investing, sinking funds for known future costs, and any payment above a debt's minimum.

Worked example

Your take-home pay is $4,000 a month. The targets are $2,000 for needs, $1,200 for wants and $800 for savings. You actually spend $2,300 on needs (57.5% of income), $1,000 on wants and save $500. Needs are $300 over, wants are $200 under and savings are $300 short of the target, and $200 has not been assigned yet. Moving that $200 into savings gets you to $700, only $100 short. The next step might be trimming one need, such as switching phone plans or shopping your car insurance.

Tips for making it work

Use take-home pay, not salary. If your 401(k) or health premiums come out of your paycheck, either use the net figure or add them back to both income and the matching bucket.
If your income varies, budget on a lean month (for example, the average of your three lowest months in the past year) and save the surplus in good months.
If needs are far above 50%, don't panic. Treat the rule as a direction to move in, not a pass or fail grade.
Paying down debt? Put your 20% to work with the debt snowball vs avalanche calculator.

FAQ

Is the 50/30/20 rule based on gross or net income?

Net income: the take-home pay that lands in your account after taxes and payroll deductions. Using gross income makes every bucket look bigger than the money you actually have.

Do minimum debt payments count as needs or savings?

Minimum payments are needs, because you have to pay them. Anything you pay above the minimum counts toward the 20% savings and debt bucket.

What if my rent alone is more than 50%?

Adjust the split, for example 60/20/20, and look for the biggest lever: a roommate, a cheaper unit at renewal or a higher income. The calculator lets you set any percentages.

Where should I keep my savings bucket?

An emergency fund usually sits in a high-yield savings account. Retirement money goes into tax-advantaged accounts. Known future bills are best kept as separate sinking funds.