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50/30/20 Budget Calculator

Calculate your budget using the 50/30/20 rule for financial planning

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50/30/20 Budget Calculator

Calculate your budget using the popular 50/30/20 rule - allocate 50% to needs, 30% to wants, and 20% to savings

Your Income

Enter your monthly income to calculate your budget breakdown

Supports formats: 1234.56 or 1.234,56

50%
30%
20%
Total100%

Your Budget Breakdown

Enter your income to see your personalized budget breakdown

What is the 50/30/20 Rule?

The 50/30/20 budget rule is a simple method to manage your money. It divides your after-tax income into three categories to help you save while still enjoying life.

50% - Needs (essentials you must pay)
30% - Wants (things you enjoy)
20% - Savings & Debt (financial security)

Budgeting Tips

  • Track your spending for a month before budgeting
  • Build an emergency fund of 3-6 months expenses
  • Automate your savings transfers
  • Review and adjust your budget monthly
  • Pay yourself first - save before spending

Frequently Asked Questions

What if I can't save 20%?

Start with whatever you can - even 5% is progress. Adjust the percentages to fit your situation, then gradually increase savings as your income grows or expenses decrease.

What counts as 'needs' vs 'wants'?

Needs are essential expenses: housing, utilities, groceries, transportation to work, insurance, minimum debt payments. Wants are everything else: dining out, subscriptions, hobbies, vacations.

Should I use gross or net income?

Use your net income (after taxes) for budgeting. This is the actual money you have available to allocate between needs, wants, and savings.