50/30/20 Budget Calculator
Enter your monthly take-home pay. We split it into needs, wants, and savings using the classic 50/30/20 rule.
Use after-tax income (what actually hits your account).
Rent, utilities, groceries, transport, minimum debt payments, insurance.
Dining out, streaming, hobbies, non-essential shopping, holidays.
Emergency fund, retirement, investments, extra debt payments.
What is the 50/30/20 rule?
The 50/30/20 rule is a simple budget framework popularised by U.S. Senator Elizabeth Warren. You take your monthly after-tax income and split it into three buckets: 50% for needs, 30% for wants, and 20% for savings and debt payoff.
What counts as a "need"?
Needs are expenses you can't avoid without serious consequences: rent or mortgage, utilities, groceries, transport to work, minimum debt payments, insurance premiums, childcare. If you'd still pay it during a rough month, it's a need.
What counts as a "want"?
Wants are the things that make life more enjoyable but aren't strictly necessary: dining out, streaming subscriptions, holidays, upgraded phones, hobbies. A basic gym membership is a need for some, a want for others — categorise honestly.
What if my needs are already over 50%?
Common in high-rent cities. Two options: (1) shrink your needs — negotiate rent, refinance debt, cut insurance — or (2) reduce the wants bucket to keep savings at 20%. Never let savings drop below 10% if you can help it.
How does this compare to zero-based budgeting?
50/30/20 is a lightweight guide. Zero-based budgeting assigns every euro or dollar a job until income minus expenses equals zero — more precise, but more work. Start with 50/30/20 and graduate to zero-based once you know your patterns.
Try our other free tools
- Savings goal calculator — how long until you hit your goal
- Sinking funds calculator — plan multiple upcoming expenses
- Retirement & FI calculator — years to financial independence