50/30/20 Budget Calculator
Split your monthly take-home pay into needs, wants and savings with the popular 50/30/20 budgeting rule.
How it works
Needs = income × 50% · Wants = income × 30% · Savings = income × 20%
The 50/30/20 rule divides your after-tax income into three buckets: 50% for needs, 30% for wants and 20% for saving and paying down debt beyond the minimums. It is a starting framework, not a strict law — high housing costs or aggressive savings goals often shift the percentages. The value is in giving every dollar a job.
Worked example
On $5,000 of monthly take-home pay, the rule points to $2,500 for needs, $1,500 for wants and $1,000 for savings and extra debt payments — about $12,000 a year set aside.
Frequently asked questions
Is income before or after tax?
After tax — use your take-home pay, the amount that actually lands in your account. If your employer already deducts retirement contributions, you can count those toward the 20% savings bucket.
What if my needs are more than 50%?
In high-cost areas that is common. Trim the wants bucket first, and treat the 50% as a target to work toward rather than a pass/fail line.
What counts as a need versus a want?
Needs are essentials you cannot easily skip: housing, utilities, groceries, insurance, transportation and minimum debt payments. Wants are everything that makes life nicer but is optional — dining out, streaming, travel and upgrades.
Related calculators
This is an educational estimate, not financial or tax advice. Confirm figures with a professional.