50/30/20 Budget Calculator
What is the 50/30/20 rule?
The 50/30/20 rule is a simple budgeting method that splits your after-tax income into three groups. Half goes to needs such as rent, utilities, groceries, insurance, transportation and minimum debt payments. Thirty percent goes to wants such as dining out, streaming, hobbies and travel. The last twenty percent goes to savings and extra debt payments.
Example
With $4,000 of monthly take-home pay, the rule suggests $2,000 for needs, $1,200 for wants and $800 for savings and debt. Over a year, that is $9,600 put toward your future.
When the percentages do not fit
In high-cost areas, needs can easily pass 50%. If that happens, trim wants first, or try a 60/20/20 split and work toward more savings over time. Start by building an emergency fund, then add retirement savings or pay down high-interest debt.
Use take-home pay, not gross pay
Enter the amount that actually lands in your account after taxes and payroll deductions. If you only know your hourly rate, use the hourly to salary calculator first, then subtract taxes.
Frequently asked questions
Is 50/30/20 right for everyone?
It is a starting point, not a rule. Your income, location and goals may call for different percentages, and that is fine.
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Estimates for education only, not financial advice.