Saving

50/30/20 budget calculator

Enter your monthly take-home pay to see how much to spend on needs, wants and savings. Adjust the split to suit your life.

$
= $4,000
%
Rent, groceries, utilities, insurance, minimum debt payments.
%
Dining out, travel, subscriptions, hobbies.
%
Monthly savings$800
Monthly needs$2,000
Monthly wants$1,200
Annual savings$9,600
Assumptions

Weekly amounts are annual totals divided by 52. Use after-tax (take-home) income.

Where your income goes each month

    50/30/20 Budget Calculator results
    BucketShareWeeklyMonthlyAnnual
    Needs50%$461.54$2,000.00$24,000
    Wants30%$276.92$1,200.00$14,400
    Savings20%$184.62$800.00$9,600

    The 50/30/20 rule

    Popularized by Elizabeth Warren and Amelia Warren Tyagi (All Your Worth, 2005), the rule splits take-home pay three ways: 50% for needs, 30% for wants and 20% for saving and paying down debt. It is a starting framework rather than a law, and it works because it is simple.

    Methodology: each bucket is income × its percentage; weekly figures are annual ÷ 52. The savings bucket covers saving and investing as well as extra debt paydown above minimums.

    Adapting it

    In high-cost cities needs may take 60% or more. If so, trim wants first rather than saving less. Early in your career or when clearing expensive debt you might flip to 50/20/30 or even 50/10/40. Whatever you choose, the calculator checks that your buckets add up to 100%.

    Make the savings count

    Frequently asked questions

    Should I use pre-tax or after-tax income?

    After-tax income, the money that actually lands in your bank account. If your retirement contributions are pre-tax, add them to your income first, then count them as savings.

    Do minimum debt payments count as needs?

    Yes. Minimum payments are a need, while extra payments above the minimum belong in the savings and debt paydown bucket.

    What if I cannot reach 20% savings?

    Start with what you can, even 5%, and increase it with every raise. Consistency matters more than the starting percentage.

    This calculator is for education and illustration. It does not account for taxes, fees or your personal situation unless stated, and is not financial advice.

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