Budget Calculator (50/30/20 Rule)
Apply the 50/30/20 budgeting rule to your monthly take-home pay and see your ideal spending targets.
Income
Compare your actual spending (optional)
Your 50/30/20 Budget
Needs (50%)
Housing, food, utilities, insurance, minimum debt payments
$2,500.00
Wants (30%)
Dining out, entertainment, hobbies, subscriptions
$1,500.00
Savings & Debt (20%)
Emergency fund, retirement, extra debt payments, investments
$1,000.00
The 50/30/20 Budget Rule Explained
The 50/30/20 budget is one of the simplest and most effective personal finance frameworks. It divides your after-tax income into three buckets: needs (50%), wants (30%), and savings plus debt repayment (20%). This gives you a clear starting point without the complexity of tracking dozens of spending categories.
Building Your Emergency Fund
Your savings bucket (20%) should prioritize: first, a $1,000 starter emergency fund; second, employer 401(k) match (free money); third, full 3–6 month emergency fund; fourth, high-interest debt payoff; fifth, retirement and other long-term investments.
Adjusting for High Cost of Living
The 50/30/20 split is a guideline, not a rule. In expensive cities where rent alone can exceed 40% of income, you may need to compress wants to 15–20% to stay on track. What matters most is that your savings percentage stays positive and grows over time.