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70/20/10 Budget Calculator

Split your take-home pay with the 70/20/10 budget rule — 70% for living expenses, 20% for savings and 10% for debt or giving — or switch to the 60/20/20 or 80/20 rule and compare with what you save now.

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Budget rule

What you save now each month

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How it works

70/20/10: living expenses = income × 70%, savings = income × 20%, debt payoff or giving = income × 10% · 60/20/20: needs 60%, wants 20%, savings 20% · 80/20: spending 80%, savings 20% · gap = savings target − what you save now

The 70/20/10 rule is a simple percentage budget popularised as an easier alternative to 50/30/20 when housing and other costs are high: 70% of take-home pay covers all living costs (needs and wants together), 20% goes to savings and investing, and 10% goes to extra debt payments or charitable giving. The 60/20/20 rule keeps needs and wants apart, and the 80/20 rule (“pay yourself first”) only fixes the savings share. Bank and personal-finance educators such as Chase and SoFi describe it as a starting framework you adjust to your own costs.

Worked example

With 4,000 of monthly take-home pay, the 70/20/10 rule gives 2,800.00 for living expenses, 800.00 for savings and investing and 400.00 for debt payoff or giving. That is 9,600.00 of savings a year. If you save 300 a month today, you need to save an extra 500.00 a month to hit the 20% target.

Sources: Chase — What is the 70-20-10 budget rule? · SoFi — What is the 70/20/10 budget rule?

Frequently asked questions

What is the 70/20/10 budget rule?

It splits take-home pay into three buckets: 70% for living expenses (rent, food, transport, fun), 20% for savings and investing, and 10% for paying off debt faster or giving to causes you care about.

Is 70/20/10 better than 50/30/20?

Neither is “better”. 70/20/10 is easier when fixed costs eat more than half your income because it does not separate needs from wants; 50/30/20 gives tighter control over discretionary spending. Both save 20%.

What if I have no debt?

Put the 10% into savings, investing or giving instead — effectively a 70/30 split. Many people use it to build an emergency fund first.

Should I use gross or net income?

Use take-home (net) pay: the money that actually lands in your account after taxes and payroll deductions. Retirement contributions taken from your paycheck can count towards the 20%.

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Educational estimate, not financial advice. Your income, prices, taxes and returns will differ — use it to plan, then check the numbers against your own bank statements and, for big decisions, a qualified adviser.