Split your monthly income into needs, wants and savings with the 50/30/20 rule.
Calculated instantly in your browser.
How do you calculate a 50/30/20 budget?
Each category amount = income × its percentage ÷ 100, with the three percentages adding up to 100%. The default split sends 50% to needs (essentials like rent and bills), 30% to wants, and 20% to savings and debt. On 5,000 a month that is 2,500 to needs, 1,500 to wants and 1,000 to savings. You can adjust the percentages.
Understanding your result
“Needs” are essentials like rent, bills and groceries; “wants” are lifestyle spending; the final share goes to savings and extra debt payments. Adjust the split if your essentials are higher or lower.
Formula and method
Each category amount = income × its percentage ÷ 100. The three percentages must add up to 100%.
Assumptions and limitations
This tool splits the income you enter using percentages you choose, defaulting to 50/30/20. It is a general budgeting framework, not personalised financial advice, and takes no account of your specific bills, debts, local cost of living or goals. If your essentials are unusually high or low, adjust the percentages to reflect your real situation.
Worked example
On 5,000 a month with the default split: 2,500 to needs, 1,500 to wants and 1,000 to savings.
How to use this tool
- Enter your monthly after-tax income.
- Keep 50/30/20 or set your own percentages (totalling 100%).
- See how much goes to needs, wants and savings.
Common mistakes to avoid
- Using gross (pre-tax) income instead of take-home pay.
- Setting percentages that do not add up to 100%.
About the Budget Calculator (50/30/20)
The Budget Calculator splits your monthly take-home pay using the popular 50/30/20 rule — 50% to needs, 30% to wants and 20% to savings and debt — and shows the amounts with a breakdown chart. You can adjust the percentages to suit you.
Who should use this tool
Anyone who wants a simple, proven starting point for managing their money each month.
Benefits
- Turn one income figure into a clear monthly plan.
- Adjust the split to match your goals.
- See the breakdown at a glance with a chart.
- Private — your income never leaves your browser.
Practical use cases
- Setting up a first monthly budget.
- Checking whether your spending fits the 50/30/20 guideline.
- Planning how much to put toward savings or debt.
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Frequently asked questions
Should I use gross or net income?
Use your after-tax (take-home) income, since that is what you actually have to budget.
Can I change the 50/30/20 split?
Yes. Edit the three percentages — for example 60/20/20 if your essentials are higher — as long as they total 100%.
Should I base the split on gross or take-home pay?
The rule is designed around take-home pay, the amount that reaches your account after tax and deductions, since that is what you actually allocate. Using gross income would overstate every category. Enter your net monthly pay so the needs, wants and savings figures reflect money you can truly spend.