What is the 50/30/20 rule?

It's a popular budgeting framework. It suggests allocating 50% of your income to Needs (rent, food), 30% to Wants (hobbies, dining out), and 20% to Savings/Debt Repayment.

Should I use gross or net income?

You should always budget based on your Net Income (take-home pay) because that is the actual money you have available to spend after taxes and deductions.

How do I categorize 'Needs' vs 'Wants'?

Needs are essential for survival and employment (housing, utilities, basic groceries, transport). Wants are things you could technically live without (Netflix, restaurant meals, new clothes).

Is this calculator private?

Yes. Your financial data is processed locally in your browser and is never sent to our servers. It is completely safe to enter real numbers.

What if my expenses exceed my income?

The calculator will show a deficit (negative balance). This is a warning sign that you need to cut discretionary spending ('Wants') or find ways to increase your income.

Monthly Budget Calculator

Take control of your finances. Plan your monthly budget using the proven 50/30/20 rule.

Your Monthly Income

Enter your net monthly income (after tax) to see how you should distribute it according to the 50/30/20 Rule.

Enter a valid income to see the breakdown.

Why You Need a Budget

"A budget is telling your money where to go instead of wondering where it went." — Dave Ramsey

Budgeting isn't about restricting yourself; it's about freedom. By understanding your cash flow, you can spend guilt-free on things you love while ensuring your future is secure. Our calculator helps you visualize your financial health in seconds.

The 50/30/20 Rule Explained

Popularized by Senator Elizabeth Warren, this rule is the gold standard for simple financial planning.

50% Needs (Essentials)

These are bills you absolutely must pay to survive and work.

Rent or Mortgage
Utilities (Electricity, Water, Internet)
Groceries (Basic food, not dining out)
Transportation (Car payment, gas, bus fare)
Insurance premiums

30% Wants (Lifestyle)

These are the things that make life enjoyable but aren't strictly necessary.

Dining out and takeout
Entertainment (Movies, Concerts, Streaming services)
Shopping (New clothes, gadgets)
Hobbies and gym memberships
Vacations

20% Savings & Debt (Future)

This category builds your net worth and secures your financial future.

Emergency Fund contributions
Retirement savings (401k, IRA)
Debt repayment (Credit cards, Student loans)
Investments

Tips for Sticking to Your Budget

Track Every Dollar: Use an app or spreadsheet to log expenses. Small purchases like daily coffee add up fast.
Pay Yourself First: Move your 20% savings to a separate account as soon as you get paid, before you have a chance to spend it.
Review Monthly: Your budget isn't static. Adjust it every month based on upcoming events (holidays, birthdays) or income changes.
Cut the "Wants": If you're over budget, the 30% category is the first place to trim. Cook at home instead of ordering out.

Frequently Asked Questions

Does this include taxes? ▼

No. You should enter your Net Income (after-tax pay). Taxes are usually deducted automatically from your paycheck, so you never actually "see" that money to budget it. If you are a freelancer, treat taxes as a "Need" expense.

What if I live in a high cost of living area? ▼

In cities like New York or London, rent might take up 40-50% of your income alone. That's okay. The 50/30/20 rule is a guideline, not a law. You might need to adjust to 60/20/20. The key is to reduce "Wants" to accommodate higher "Needs," never reduce "Savings."

Where do student loans go? ▼

Minimum payments on debt are technically a "Need" (to avoid default). However, any extra payments to pay off debt faster fall into the "20% Savings/Debt" category.

Is my financial data safe? ▼

Absolutely. This calculator runs entirely on your device (client-side). We do not collect, store, or transmit your income or expense data. It disappears as soon as you close the tab.