50/30/20 Budget Calculator
A simple budget framework: 50% needs, 30% wants, 20% savings.
Your numbers
Your results
50/30/20 Budget Calculator by TheCalcTools
How the 50/30/20 Budget Calculator works
Enter your monthly take-home pay.
The rule allocates 50% to needs, 30% to wants and 20% to savings and debt repayment.
Enter your actual spending to see what is left for savings.
The formula
Worked example
Using the default values shown in the calculator:
| Monthly after-tax income | $4000 |
|---|---|
| Your actual needs (rent, food, bills) | $2400 |
| Your actual wants | $1000 |
- On $4,000: needs $2,000, wants $1,200, savings $800.
- Your spending leaves $600, a 15.0% savings rate.
Result:
| Needs target (50%) | $2,000 |
|---|---|
| Wants target (30%) | $1,200 |
| Savings target (20%) | $800 |
| Your savings | $600 |
| Your savings rate | 15.0% |
Frequently asked questions
Who created the 50/30/20 rule?
It was popularised by US senator Elizabeth Warren and Amelia Warren Tyagi in the book All Your Worth (2005).
What if needs exceed 50%?
In high-cost areas this is common. Trim wants first, then look for ways to lower fixed costs or raise income.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.