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Budget Calculator

Split your income using the 50/30/20 rule — needs, wants, and savings.

Monthly Take-Home Income

Budget Allocation

Needs

Wants

Savings & Debt

Total: 100% ✓

Allocation

Needs (50%)

Wants (30%)

Savings & Debt (20%)

Needs

50%

Housing, food, transport, utilities, insurance

$2,500

$30,000 / year

Wants

30%

Dining out, entertainment, hobbies, shopping

$1,500

$18,000 / year

Savings & Debt

20%

Emergency fund, retirement, debt payoff

$1,000

$12,000 / year

Monthly Income

$5,000

Annual Income

$60,000

What is the 50/30/20 rule?: A budgeting framework popularized by Senator Elizabeth Warren. Allocate 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment.
What counts as a "need" vs a "want"?: Needs are essentials you can't live without: rent/mortgage, groceries, utilities, insurance, and minimum loan payments. Wants are everything else that improves your lifestyle but isn't strictly necessary.
Can I adjust the percentages?: Yes — the 50/30/20 split is a guideline, not a rule. Many people adjust based on their situation. High cost-of-living cities often push the needs bucket above 50%.
Should I use gross or net income?: Use take-home (net) income — the amount deposited after taxes and pre-tax deductions like 401k contributions. This reflects what you actually have to allocate.

Guide: How to Create a Monthly Budget

A practical guide to the 50/30/20 rule, how to categorize spending, and common budgeting mistakes to avoid.

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