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Budget Calculator (50/30/20 Rule)

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

What arrives in your account after tax and deductions.

Needs: housing, food, bills, transport

2,000.00

Wants: eating out, hobbies, travel
1,200.00
Savings and extra debt payments
800.00
Savings rate
20%
Saved in a year
9,600.00

Your monthly pay
  • Needs2,000.0050%
  • Wants1,200.0030%
  • Savings800.0020%

Good to know. The 20% for savings works best when it leaves your account the day you’re paid, before the 30% notices.

Not financial advice. Uses only the numbers and rates you enter — no live data.

How it works

In plain words

Take your monthly take-home pay and split it by the three percentages. Whatever needs and wants don’t use goes to savings and paying off debt faster.

The formula

needs = pay × 50 %
wants = pay × 30 %
savings = pay × (100 % − needs − wants)

Worked example

On 4,000 a month: 2,000.00 for needs, 1,200 for wants and 800 for savings, which is 9,600 a year.

Sources

  • Elizabeth Warren and Amelia Warren Tyagi, All Your Worth: The Ultimate Lifetime Money Plan, 2005 The 50/30/20 balanced money formula.

Sources checked September 30, 2026. 3 automated tests check its answers on every change.

About the budget calculator (50/30/20 rule)

The 50/30/20 rule is a simple way to budget without tracking every coffee. It was popularised by Elizabeth Warren and Amelia Warren Tyagi in their book All Your Worth. Split your take-home pay into three buckets: 50% for needs, 30% for wants and 20% for savings.

Needs are what you must pay whatever happens: rent or mortgage, utilities, groceries, insurance, transport to work and minimum loan payments. Wants are everything that makes life nicer but could be cut: eating out, streaming, holidays, new clothes you don’t strictly need. Savings include an emergency fund, retirement contributions and any payments above the minimum on debts.

The percentages are a starting point, not a law. In expensive cities, housing alone can take half of take-home pay, so 60/20/20 or even 70/20/10 is more realistic. If you have high-interest debt, moving money from wants to savings and debt repayment pays off quickly. Adjust the needs and wants fields; savings is what is left.

Use take-home pay, not your salary: taxes and payroll deductions are already gone before the budget starts. If your income varies, budget on a low month and treat anything above it as extra savings. The paycheck and take-home pay calculators can work out your monthly take-home figure.

Questions people ask

What is the 50/30/20 rule?

A budget that spends 50% of take-home pay on needs, 30% on wants and puts 20% into savings and debt repayment.

How much should I save each month?

The rule suggests 20% of take-home pay. On 4,000 a month, that is 800.

What if my needs are more than 50%?

That is common where housing is expensive. Raise the needs percentage and cut wants first, so savings stay as close to 20% as you can.

Should the budget use gross or net pay?

Net, take-home pay: what actually arrives in your account.

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