Budget Calculator

The 50/30/20 rule is a simple budgeting framework. Allocate 50% of your after-tax income to needs (housing, food, utilities), 30% to wants (entertainment, dining), and 20% to savings and debt repayment. It gives you a balanced starting point for any income level.

Start by listing your monthly after-tax income. Then track every expense for one month — fixed bills, variable spending, and discretionary purchases. Categorize each expense and compare totals to your income. The gap between income and spending is your surplus (or deficit). Use this calculator to do it instantly.

Needs are expenses required for basic living: housing, groceries, utilities, insurance, transportation to work, and minimum debt payments. Wants are everything else — dining out, streaming services, gym memberships, hobbies, and non-essential shopping.

Review your budget monthly. Life changes — raises, new expenses, seasonal costs — mean your budget should evolve too. Set a calendar reminder for the first of each month to compare actual spending to your plan and adjust accordingly.

If you have a deficit, prioritize cutting wants first. Cancel unused subscriptions, reduce dining out, and negotiate bills. If that's not enough, look at reducing needs — consider a roommate, refinancing loans, or finding a more affordable housing option. A side income can also close the gap.

Always budget with net income — your take-home pay after taxes, retirement contributions, and health insurance deductions. Using gross income inflates your available money and leads to overspending.