50/30/20 Budget Calculator
Split your after-tax income into Needs, Wants, and Savings.
Enter Your Income
Enter your net income (what hits your bank account).
Your Budget Breakdown
Enter your income to see your 50/30/20 split.
Your Monthly Budget
Based on an after-tax income of
Needs (50%)
Housing, groceries, utilities, minimum debt
Wants (30%)
Dining, entertainment, hobbies, travel
Savings/Debt (20%)
Investments, emergency fund, extra debt
What is the 50/30/20 Rule?
The 50/30/20 rule is a simple, intuitive budgeting method formalized by Senator Elizabeth Warren. It helps you manage your money easily by dividing your after-tax income into three distinct categories: Needs, Wants, and Savings/Debt Repayment.
This rule is popular because it's highly flexible and doesn't require tracking every single penny you spend. Once you allocate your money into these buckets, you have a solid framework for financial health.
50% for Needs
These are expenses that you absolutely must pay to survive. If you lost your job today, these are the bills that cannot be ignored without severe consequences.
- Rent or Mortgage
- Groceries & Basic Food
- Utilities (Water, Electicity, Gas)
- Minimum Debt Payments
- Insurance & Health Care
30% for Wants
These are the "fun" expenses. They enhance your lifestyle but aren't strictly necessary for survival. You could eliminate these if you were in a financial bind.
- Dining Out & Delivery
- Entertainment & Subscriptions
- Travel & Vacations
- Hobbies & Shopping
- Upgraded Technology
20% for Savings & Debt
This bucket secures your financial future. It includes putting money away for emergencies, investing for retirement, or completely paying off high-interest debt.
- Emergency Fund Contributions
- 401(k), IRA, or Investments
- Extra Debt Payments (above minimum)
- Saving for a House Downpayment
Pro Tip
The 50/30/20 rule uses your net income (after taxes). If you are paying for health insurance or a 401(k) via paycheck deductions, remember to factor those in. The 401k deduction counts towards your 20% savings goal!
Frequently Asked Questions
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