Budget calculator

50/30/20 Budget Calculator

Compare needs, wants and savings or extra debt payments with the 50/30/20 framework. The result describes the numbers you enter; it does not prescribe how your household should spend.

Total allocated—

Income remaining—

Share allocated—

Monthly comparison—

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Actual versus reference

Where the entered income goes

Needs— · —

50% reference——

Wants— · —

30% reference——

Savings and debt— · —

20% reference——

How the comparison works

Each reference amount equals after-tax monthly income multiplied by 50%, 30% or 20%. Actual percentages divide each amount entered by that same income. No category is automatically reclassified.

The framework is a planning heuristic, not a rule, guarantee or personalised recommendation.

Formula

The three reference amounts always add to after-tax income.

At €3,000 of after-tax monthly income, the framework produces reference amounts of €1,500 for needs, €900 for wants and €600 for savings or additional debt payments.

Needs referenceincome × 50%

Wants referenceincome × 30%

Goals referenceincome × 20%

Actual sharecategory amount ÷ income

Classification

The difficult part is deciding what each expense means.

A rent payment is normally a need. A larger home chosen for lifestyle reasons can contain both necessity and preference. Minimum debt payments keep an account current, while extra principal payments may belong in the goals category.

Read how the 50/30/20 budget rule works →

Build the inputs

Normalise irregular bills before assigning categories.

Convert weekly, quarterly and annual costs into monthly amounts, then return here to compare the totals.

Open monthly expenses calculator

Source

A common budgeting rule, not a required standard.

The US Consumer Financial Protection Bureau presents 50/30/20 as one example of a budgeting rule and asks users to analyse whether it fits a scenario.

Consumer Financial Protection Bureau — Analyzing budgets