Free 50/30/20 Budget Calculator
Enter your monthly take-home income to instantly see your recommended split: 50% for needs, 30% for wants, and 20% for savings and debt repayment.
50/30/20 Budget Calculator
Mr B says: This rule is a starting point, not a straitjacket. If you live somewhere expensive, your 'needs' slice will naturally be bigger — that's fine. Just keep savings in the mix.$
Your 50/30/20 split
50% — Needs (rent, food, bills, transport)$0.00
30% — Wants (dining, entertainment, hobbies)$0.00
20% — Savings & debt$0.00
⚠️ This tool is for general guidance only and is not financial advice.
Common questions
50/30/20 rule questions
The 50/30/20 rule divides monthly take-home pay into needs (50%), wants (30%), and savings plus debt repayment (20%). It was popularised by US Senator Elizabeth Warren in her 2005 book All Your Worth. The percentages are a starting framework, not a strict prescription — adjust them to fit your real circumstances.
Needs are unavoidable: rent, basic groceries, utilities, essential transport, insurance, and minimum debt repayments. Wants are choices: dining out, streaming subscriptions, gym memberships, hobbies, and non-essential shopping. The line is personal — be honest rather than optimistic about which category each expense belongs in.
That's common in high-cost cities. Adjust the split rather than abandon it — try 60/20/20 or 55/25/20. The important thing is keeping the savings and debt repayment slice in your budget. Shrink wants before you shrink savings.
The 50/30/20 rule gives you broad categories and percentage targets — it's quick and flexible. Zero-based budgeting assigns every dollar to a specific named category until the remaining balance hits exactly zero — it requires more effort but gives tighter control. Try our Zero-Based Budget Calculator if you want the more detailed version.