50/30/20 Budget Calculator
Create a balanced budget using the popular 50/30/20 rule
Your Income
Enter your after-tax income
Your Monthly Budget
$5,000
After-tax monthly income
Needs (50%)
$2,500
Essential expenses
Wants (30%)
$1,500
Discretionary spending
Savings (20%)
$1,000
Financial goals
Budget Visualization
Needs (50%)
Monthly Budget
$2,500
Weekly: $577.37
Annual: $30,000
Examples:
- •Housing (rent/mortgage)
- •Utilities (electricity, water, gas)
- •Groceries
- •Transportation (car payment, gas, insurance)
- •Minimum debt payments
- •Healthcare & insurance
Wants (30%)
Monthly Budget
$1,500
Weekly: $346.42
Annual: $18,000
Examples:
- •Dining out & entertainment
- •Shopping & hobbies
- •Subscriptions (streaming, gym)
- •Vacations & travel
- •Gifts
- •Personal care & grooming
Savings (20%)
Monthly Budget
$1,000
Weekly: $230.95
Annual: $12,000
Examples:
- •Emergency fund
- •Retirement contributions (401k, IRA)
- •Investment accounts
- •Extra debt payments
- •Down payment savings
- •Financial goals & future planning
Understanding the 50/30/20 Budget Rule
The 50/30/20 rule is a simple budgeting method that divides your after-tax income into three categories:
50% - Needs (Essential Expenses)
These are expenses you can't avoid - housing, food, transportation, utilities, insurance, and minimum debt payments. If your needs exceed 50%, look for ways to reduce costs like downsizing housing or refinancing loans.
30% - Wants (Discretionary Spending)
These are things you choose to spend money on but could live without - dining out, entertainment, hobbies, vacations, and premium subscriptions. This category is the most flexible and can be adjusted based on your goals.
20% - Savings & Debt Repayment
This includes emergency funds, retirement contributions, investments, and extra debt payments beyond minimums. This should be your priority to build financial security and achieve long-term goals.
Pro Tips:
- Use your after-tax (take-home) income, not gross income
- Adjust percentages based on your situation (e.g., 60/20/20 if needs are high)
- Automate savings to make it easier to stick to the plan
- Review and adjust your budget quarterly
- The 20% savings should be your minimum - save more if possible