Free budget calculator
Build a monthly budget using the 50/30/20 rule — enter your net income to see recommended spending on needs, wants, and savings, updated live, as you type.
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The 50/30/20 rule is a guideline. Adjust percentages to fit your situation.
Results are estimates. Consult a professional.
How the budget calculator works
The budget calculator applies the 50/30/20 rule to your monthly take-home pay. Developed by Senator Elizabeth Warren and popularised in All Your Worth, the rule divides after-tax income into three buckets: half for needs, 30% for wants, and 20% for savings or debt repayment. The calculator takes your net (after-tax) income as the base and outputs the dollar target for each bucket.
Worked example: $5,000/month take-home
Jordan brings home $5,000 a month after taxes. Applying the 50/30/20 rule gives a clear spending plan for every dollar before it arrives in the bank account.
50/30/20 budget at common income levels
The table below shows the three budget buckets at five common monthly net-income levels. Use your actual take-home pay and scale linearly for any amount in between.
| Monthly net income | Needs (50%) | Wants (30%) | Savings (20%) |
|---|---|---|---|
| $3,000 | $1,500 | $900 | $600 |
| $4,000 | $2,000 | $1,200 | $800 |
| $5,000 | $2,500 | $1,500 | $1,000 |
| $6,000 | $3,000 | $1,800 | $1,200 |
| $8,000 | $4,000 | $2,400 | $1,600 |
Figures calculated using the 50/30/20 rule. Actual needs vary by location and household size.
Tips for making your budget stick
The 50/30/20 rule is a starting point, not a straitjacket. High-cost cities may push needs above 50%; that is fine as long as you consciously reduce wants to compensate. The most important step is tracking where money actually goes for one full month before setting targets.
- Use net income, not gross — your take-home pay is the only money you can actually spend; budgeting from gross leads to overspending every time.
- Automate the 20% first — transfer savings the day your paycheck lands so the money never hits your spending accounts; treat savings as a non-negotiable bill.
- Audit needs vs. wants honestly — a streaming service is a want, not a need; reclassifying wants as needs inflates the 50% bucket and starves savings.
- Re-run the calculator after every income change — a raise, a bonus, or a side-hustle windfall should all reset your budget targets upward.
- Adjust ratios for your life stage — someone carrying high-interest debt may run 50/20/30 temporarily (more to debt repayment) until the balance is cleared.
Accuracy and limitations
The 50/30/20 calculator is a planning heuristic, not a prescription. Real household budgets depend on family size, location, debt obligations, health costs, and savings goals that a single percentage rule cannot capture. A single-income household in San Francisco will find 50% far too low for needs, while a dual-income household in a low-cost area may save 30% comfortably. Use the output as a benchmark and adjust each bucket to fit your real life.
Not financial advice — consult a financial professional for your specific situation.
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