50/30/20 Budget Calculator
Split your take-home pay into needs, wants and savings using the 50/30/20 rule.
After taxes and deductions.
Needs–Rent, groceries, utilities, insurance, minimum debt payments
Wants–Eating out, streaming, hobbies, travel, shopping
Savings & debt–Emergency fund, retirement, extra debt payments
Compare with what you spend now (optional)
What is the 50/30/20 rule?
The 50/30/20 rule is a simple way to budget without tracking every dollar. You split your after-tax income into three buckets:
- 50% for needs: things you must pay to live and work, like rent or mortgage, utilities, groceries, insurance, transport and minimum loan payments.
- 30% for wants: things you could live without, like dining out, subscriptions, hobbies, vacations and upgrades.
- 20% for savings and debt: an emergency fund, retirement contributions, investing and paying off debt faster than the minimum.
Example
With $4,200 a month take-home pay, the rule suggests $2,100 for needs, $1,260 for wants and $840 for savings and extra debt payments.
When to change the split
In high-cost cities, needs often take 60% or more. That's fine: adjust the percentages above so they add up to 100%, and try to protect the savings bucket first. If you have high-interest credit card debt, putting more into the third bucket usually pays off quickly. See our credit card payoff calculator.
Frequently asked questions
Is the 50/30/20 rule based on gross or net income?
Net income, meaning what actually lands in your bank account after taxes. If retirement contributions come out of your paycheck, you can add them back and count them as savings.
Are minimum debt payments a need or savings?
Minimum payments are needs. Anything you pay above the minimum counts toward the 20% savings and debt bucket.