Budget Calculator
Use the 50/30/20 rule to allocate your monthly take-home income.
After-tax income you actually receive each month
Monthly Income
🏠 Needs
50% — essentials you must pay
Rent/mortgage, utilities, groceries, transportation, minimum debt payments, insurance
🎬 Wants
30% — things you enjoy
Dining out, entertainment, subscriptions, hobbies, shopping, travel
💰 Savings & Debt
20% — your future
Emergency fund, retirement contributions, extra debt payments, investments
Annual Projection
Needs / year
Wants / year
Savings / year
What Is the 50/30/20 Rule?
The 50/30/20 rule is a simple budgeting framework popularized by Senator Elizabeth Warren. It divides your after-tax income into three categories: 50% for needs (essentials you must have), 30% for wants (things that improve your quality of life), and 20% for savings or extra debt payments.
The split is a guideline, not a rule. High-cost-of-living cities may require 60%+ for needs. Adjust the percentages above to match your situation. The key principle is that savings comes before discretionary spending — pay yourself first.