Budget Planner Calculator
Build your monthly budget with the 50/30/20 framework — 50% needs, 30% wants, 20% savings — and see how your spending stacks up.
The 50/30/20 rule is the simplest proven budget framework: half your after-tax income for needs (housing, food, transport), 30% for wants (dining, entertainment), and 20% for savings and debt payoff. Enter your income and actual spending to see where you stand.
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Monthly Budget Planner
Net income · Needs · Wants · Savings
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Monthly after-tax income
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Needs (50%)
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Wants (30%)
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Savings (20%)
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Needs
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Wants
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Savings
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Budget check
How it's calculated
The 50/30/20 rule explained
Created by Elizabeth Warren and Amelia Warren Tyagi, the 50/30/20 rule divides after-tax income into three buckets:
Needs target = Net income × 50%
Wants target = Net income × 30%
Savings target = Net income × 20%
Surplus/deficit per category = Target − Actual spending
- Needs
- Non-negotiable expenses: housing, food, utilities, transport, minimum debt payments, health insurance.
- Wants
- Discretionary spending you choose but could reduce: dining, entertainment, shopping, subscriptions, hobbies.
- Savings rate
- The percentage of your net income that goes to building wealth or reducing debt beyond minimums. Recommended minimum: 20%.
Disclaimer: the 50/30/20 rule is a guideline, not a law. High cost-of-living areas may require adjusting the ratios. Consult a financial planner for personalized advice.
Frequently asked questions
What is the 50/30/20 rule?
The 50/30/20 rule allocates 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment. It was popularized by Elizabeth Warren in "All Your Worth" (2005). It's a starting point — high-cost cities or lower incomes may need different ratios.
Should I use gross or net income?
Always net income (take-home pay after taxes). Gross income inflates your available money — you can't spend what goes to taxes and mandatory deductions.
What if my needs are more than 50%?
Many people in high-cost cities spend 60–70% on needs. This is common and doesn't mean the framework fails — it means you need to reduce wants further to maintain saving, or work toward increasing income. Even saving 10% is meaningful.
Does extra debt payoff count as savings?
Yes. Paying off high-interest debt is the best guaranteed "investment return" you can get. Minimum debt payments are a need; anything extra is counted in the savings bucket.