50/30/20 Budget Calculator
Split your take-home pay into needs, wants and savings using the 50/30/20 rule. Free and instant.
The 50/30/20 rule
The 50/30/20 rule is a simple way to plan a budget. Spend about 50% of your after-tax income on needs, 30% on wants and put 20% toward savings or paying down debt. It is a starting point, not a law, so adjust the percentages to fit your life.
What counts as a need?
Housing, utilities, groceries, transport to work, minimum debt payments and insurance. Streaming, takeaways and holidays are wants. If your needs are above 50%, try trimming wants first, then look at ways to lower fixed costs.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Track a month of spending before setting percentages.
- In high-cost areas, 60/20/20 may be more realistic.
- Pay yourself first by automating the savings transfer.
Learn more
Frequently asked questions
Should I use gross or net income?
Use take-home pay, the amount that actually lands in your account.
What if I can't save 20%?
Start with what you can, even 5%, and raise it when your income or costs change.
Does debt count as a need or savings?
Minimum payments are needs. Extra payments beyond the minimum count toward the 20%.
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