Budget calculator
Split your take-home pay into needs, wants and savings with the 50/30/20 rule.
About this calculator
This budget calculator splits your take-home pay with the 50/30/20 rule: half for needs, 30% for wants and 20% for savings and paying off debt.
If your living costs are high or you want to save more, choose a different split.
How it works
Your take-home pay is split by the rule you choose. Under 50/30/20, half goes on needs, 30% on wants and 20% on saving or paying off debt beyond the minimum.
Last reviewed:
Worked example
- Monthly take-home pay: $4,500
- Rule: 50/30/20: needs, wants, savings
Needs: $2,250.00 (a month)
Common questions
What is the 50/30/20 rule?
A simple budget: 50% of your take-home pay on needs, 30% on wants and 20% on savings and extra debt payments. It's a starting point, not a strict rule.
What counts as a need?
Costs you must pay to live and work: housing, utilities, groceries, insurance, transport and minimum debt payments.
What if my needs are more than 50%?
That's common where housing is expensive. Use a 60/20/20 or 70/20/10 split for now, and look for ways to bring needs down over time.
The story behind it
Where the idea came from: Elizabeth Warren and her daughter Amelia Warren Tyagi popularised the 50/30/20 rule in their 2005 book All Your Worth.
Warren, a bankruptcy law professor at the time, had seen how families fell into debt when fixed costs took over their budgets. The 50/30/20 rule gave a simple target that still leaves room for enjoying life. It remains one of the most widely used budgeting rules.
Why you can trust this calculator
- It runs in your browser. Nothing you type into it is sent anywhere.
- The method is explained on this page, so you can check it yourself.
- Free to use, with no sign-up.
- Results are estimates, not financial advice.
- Spotted a mistake? Tell us and we'll look into it.
After 15 years as a mathematics educator, I built CalculStore to give students, teachers, professionals and anyone working with numbers simple, reliable tools.
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