50/30/20 Budget Calculator
Enter your monthly after-tax income and see how the 50/30/20 rule splits it across needs, wants, and savings. Adjust the percentages to fit your lifestyle.
Your Income
$
Split Percentages
%
%
%
Needs (50%)
$2,500
Wants (30%)
$1,500
Savings (20%)
$1,000
Budget Breakdown
Needs
Wants
Savings
What Goes Where?
Needs
- Housing / Rent
- Groceries
- Utilities
- Insurance
- Transport
- Minimum debt payments
Wants
- Dining out
- Entertainment
- Shopping
- Subscriptions
- Hobbies
- Vacations
Savings
- Emergency fund
- Retirement
- Investments
- Extra debt payments
What Is the 50/30/20 Rule?
The 50/30/20 rule is a straightforward budgeting framework popularized by Senator Elizabeth Warren in her book All Your Worth. It divides your after-tax income into three buckets:
- 50% — Needs: Essential expenses you can't avoid — housing, groceries, utilities, insurance, transportation, and minimum debt payments.
- 30% — Wants: Everything you enjoy but could live without — dining out, entertainment, shopping, subscriptions, travel, and hobbies.
- 20% — Savings: Money that builds your future — emergency fund, retirement contributions, investments, and extra debt payments.
How to Use This Calculator
- Enter your monthly take-home pay — this is your income after taxes, not your gross salary.
- Review the split — the calculator shows how much goes to each bucket by default.
- Adjust if needed — the 50/30/20 split is a guideline. Modify the percentages to match your reality and goals.
Tips for Sticking to Your Budget
- Automate your savings: Set up automatic transfers on payday so savings happen before you can spend.
- Track for one month: Before budgeting, track every expense for a month to see where your money actually goes.
- Use separate accounts: Keep needs, wants, and savings in separate bank accounts to make the boundaries clear.
- Review monthly: Revisit your budget at the end of each month and adjust for the next one.