Budget Calculator
Type your monthly after-tax income and choose a budget type. The 50/30/20 rule gives half to needs, 30% to wants and 20% to savings and debt payments above the minimum. The custom types let you set your own three percentages, or list your own categories and see each one as a share of your income and what is left. Each share is rounded to the cent on its own, so for some incomes the three shares add up to a cent more than the income.
How to use the Budget Calculator
- Enter your numbers in the Budget Calculator above.
- Press the Calculate button to see the result.
- To try other numbers, change any value and press the button again.
The 50/30/20 rule and a custom budget
Share = income × percent ÷ 100 · · · Left = income − the sum of your categories
The rule splits income as 50% needs, 30% wants and 20% savings and debt repayment. Needs are the bills you have to pay: housing, utilities, groceries, insurance and minimum debt payments. Wants are spending you could do without, such as dining out, entertainment, subscriptions and hobbies. The last 20% goes to an emergency fund, retirement and debt payments above the minimum. With your own percentages the same formula runs on your figures, which must add up to exactly 100. With your own categories, each amount is divided by your income, and a blank amount counts as 0.
Worked example
$5,000 monthly take-home pay: $2,500 to needs (housing, utilities, groceries, insurance), $1,500 to wants (dining out, entertainment, hobbies) and $1,000 to savings and extra debt payments. With your own split of 60%, 25% and 15% the shares are $3,000, $1,250 and $750. With the categories the form starts with, $2,600 of needs, $500 of wants and $600 of savings come to $3,700, or 74% of the income, and $1,300 is left.
Frequently asked questions
Can I change the percentages?
Yes. Choose "Custom: my own percentages" and type your three figures. They must add up to exactly 100, and the form tells you the total when they do not. 60% of $5,000 is 60 × 5,000 / 100 = $3,000.
How do I make a custom budget with my own categories?
Choose "Custom: my own categories". Rename the lines, add or remove them, and put each one in the needs, wants or savings group. You get each category as a percent of your income, the total, what is left, and each group next to the amount the 50/30/20 rule gives it. The groups are yours to set, and the comparison is arithmetic, so it does not say whether your budget is right for you.
What if my categories come to more than my income?
The result shows how much they are over by. On an income of $5,000, categories of $5,200 show $200 over and 104% of your income.
Should I budget gross or net income?
Net. The field asks for your monthly income after tax, and the calculator splits whatever number you type. A pre-tax figure gives shares larger than the money you have to spend.
Why do the three shares add up to a cent more than my income?
Each share is rounded half up to the cent on its own. $1,234.55 splits into $617.275, $370.365 and $246.91, which the calculator shows as $617.28, $370.37 and $246.91. That is one cent more than the income.