50/30/20 Budget Calculator
A simple starting point for budgeting: split your take-home pay into needs, wants, and savings or extra debt repayment.
Your details
Your monthly budget split
$6,500
Needs
$3,250
Wants
$1,950
Savings & extra debt repayment
$1,300
Per week
$1,500
Per month
$6,500
Per year
$78,000
The 50/30/20 rule is a starting point, not a strict budget. Adjust the split to fit your situation, especially if you're in a high cost-of-living area or aggressively paying down debt.
How to use this calculator
- 1. The amount that actually lands in your account after tax, at whatever frequency you're paid.
- 2. 50% toward needs, 30% toward wants, and 20% toward savings or paying down debt faster.
- 3. Treat this as a starting point. If your rent alone eats more than 50%, or you're aggressively paying off debt, shift the balance.
FAQ
Where does the 50/30/20 rule come from?
It was popularized as a simple, memorable way to structure a budget without tracking every single transaction. It's not a law of finance, just a reasonable default split that works for a lot of people as a starting point.
What counts as a 'need' versus a 'want'?
Needs are costs you'd struggle to avoid without real consequences: rent or mortgage, groceries, utilities, minimum debt repayments, transport to work. Wants are the stuff that makes life nicer but isn't essential: eating out, streaming subscriptions, hobbies, holidays.
What if my needs are more than 50% of my income?
It happens, especially with high rent or a single income supporting a family. Don't panic about hitting the exact numbers, use the split as a lens to see where your money's actually going, and look for the biggest opportunities to shift the balance over time.
Should extra debt repayments count as savings?
Yes. Paying down debt faster than the minimum, especially high interest debt, is functionally the same as saving: it grows your net worth. This calculator groups it with savings in the 20% category.
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Disclaimer
This calculator applies a fixed 50/30/20 split to your entered income and doesn't know your actual expenses. It's a general budgeting guideline, not a personalized plan, and doesn't account for your specific costs, debts or goals. This tool provides general information only, is not financial advice, and doesn't replace a budget built around your real numbers.