Create a balanced monthly budget using the popular 50/30/20 rule. Enter your take-home income to see exactly how much to allocate to needs, wants, and savings.
After taxes and deductions
$2,500/mo
$30,000/yr
$1,500/mo
$18,000/yr
$1,000/mo
$12,000/yr
Needs
$2,500
50.0% of budget
Wants
$1,500
30.0% of budget
Savings
$1,000
20.0% of budget
Monthly Total
$5,000
Needs: $2,500
Wants: $1,500
Savings: $1,000
Annual Total
$60,000
Needs: $30,000
Wants: $18,000
Savings: $12,000
The 50/30/20 budget rule is one of the simplest ways to manage your money. Instead of tracking every dollar, you divide your after-tax income into three broad categories: 50% for needs, 30% for wants, and 20% for savings and debt repayment. This approach gives you structure while still allowing flexibility in how you spend within each category.
The 50/30/20 rule is a simple budgeting framework popularized by Senator Elizabeth Warren. It recommends allocating 50% of your after-tax income to needs (essentials), 30% to wants (lifestyle choices), and 20% to savings and debt repayment. It provides a balanced starting point for managing your money.
Needs are expenses essential for basic living: housing, utilities, groceries, insurance, minimum debt payments, transportation to work, and healthcare. Wants are everything else that improves quality of life but isn't strictly necessary: dining out, entertainment, subscriptions, shopping, and travel.
The 50/30/20 rule is a guideline, not a strict rule. If your needs exceed 50% (common in high-cost areas), try to compensate by reducing wants. If you have significant debt, consider a 50/20/30 split instead, putting more toward debt repayment. The most important thing is having a plan you can stick to.
50/30/20 Budget Calculator
Enter your take-home pay to see how the 50/30/20 budgeting rule applies to your income. This popular framework divides your after-tax income into three categories: needs, wants, and savings.
Monthly Budget Calculator
Enter your income and expenses to get a clear picture of your monthly cash flow. See where your money goes, identify areas to save, and take control of your finances.