Budget Calculator

Calculate your ideal monthly budget using popular budgeting methods like the 50/30/20 rule.

Monthly Income (After Tax)

Budget Method Choose the budgeting method that fits your situation. The 50/30/20 rule is the most popular for beginners.

How This Budget Calculator Works

This calculator helps you divide your income into three main categories: Needs, Wants, and Savings. The most popular method is the 50/30/20 rule, but you can choose what works best for your situation.

Budget Methods Explained

50/30/20 Rule (Recommended for Beginners)

50% Needs: Essential expenses like rent, groceries, utilities, insurance, minimum debt payments
30% Wants: Non-essential spending like dining out, entertainment, hobbies, subscriptions
20% Savings: Emergency fund, retirement, debt payoff above minimum, savings goals

60/20/20 Rule

60% Needs: Use if your essential expenses are higher (high cost of living areas)
20% Wants: Less discretionary spending
20% Savings: Same savings rate maintained

70/20/10 Rule

70% Needs: For tight budgets or high debt
20% Wants: Reduced but still maintains quality of life
10% Savings: Lower savings rate, increase as income grows

Example Budget Calculation

Scenario: You earn $3,500 per month after taxes and use the 50/30/20 rule.

Needs ($1,750): Rent ($1,200), groceries ($300), utilities ($100), car insurance ($150)

Wants ($1,050): Dining out ($200), entertainment ($150), hobbies ($200), subscriptions ($100), shopping ($400)

Savings ($700): Emergency fund ($400), retirement ($300)

This gives you a clear framework to manage your money without tracking every single dollar.

Tips for Using Your Budget

Track your spending: For the first month, write down where your money actually goes to see if it matches your budget.

Adjust as needed: Your budget should work for you. If the percentages don't fit, adjust them.

Automate savings: Set up automatic transfers to your savings account on payday.

Review monthly: Check your budget each month and make changes based on your spending patterns.

Remember: A budget is a plan, not a restriction. It helps you spend your money on what matters most to you while still saving for the future.