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50/30/20 Budget Calculator

Split your monthly take-home pay into needs, wants, and savings using the popular 50/30/20 rule.

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How the rule works

  • 50% goes to needs — rent, utilities, groceries, insurance, minimum debt payments.
  • 30% goes to wants — dining out, entertainment, subscriptions, hobbies.
  • 20% goes to savings and extra debt payoff — emergency fund, retirement, investments.

About this calculator

The 50/30/20 budget calculator splits your monthly take-home pay into three buckets using a popular rule of thumb introduced by Senator Elizabeth Warren: 50% for needs, 30% for wants, and 20% for savings and debt repayment. Enter your after-tax monthly income and the calculator shows how much to allocate to each category, plus weekly and annual breakdowns so you can plan paycheck by paycheck or set yearly goals.

Field explanations

Monthly after-tax income
Your take-home pay for one month — the amount that lands in your bank account after taxes, health insurance, and retirement withholdings. If you are paid bi-weekly, multiply one paycheck by 2.167 (or add two paychecks plus a third when applicable). Self-employed? Use your average monthly income after setting aside estimated taxes.

Category guide

Needs — 50%
Essentials you cannot easily skip: rent or mortgage, utilities, groceries, transportation, insurance premiums, and minimum debt payments. If your needs exceed 50%, the rule suggests cutting fixed costs or boosting income before tightening other buckets.
Wants — 30%
Lifestyle spending: dining out, streaming services, hobbies, travel, upgraded phone plans, gym memberships, and discretionary shopping. This is the most flexible bucket and the easiest place to trim when goals shift.
Savings & debt payoff — 20%
Money that builds your future: emergency fund, retirement contributions (401k, IRA), brokerage investing, and any debt payments above the minimum (especially high-interest credit cards). Treat this bucket like a non-negotiable bill.