50/30/20 Budget Calculator
Split your take-home pay into needs, wants and savings — the classic 50/30/20 rule.
The 50/30/20 rule splits your after-tax income three ways: 50% for needs, 30% for wants and 20% for savings and paying down debt. It was popularized by Elizabeth Warren and Amelia Warren Tyagi in "All Your Worth" — and its appeal is that the whole budget is three numbers you can hold in your head.
How to use
- Enter your monthly take-home pay — what actually lands in your account after tax.
- Click "Build my budget" to see your three target amounts.
- Optionally, fill in what you really spend in each bucket to see where you are over or under.
- Short on a bucket? The usual fixes are trimming wants first and renegotiating the big needs (rent, insurance, phone plan).
About this tool
Needs are the bills you must pay to live and work: rent or mortgage, utilities, groceries, basic transport, insurance and minimum debt payments. Wants are everything optional that makes life fun. The last bucket is the one that changes your future: emergency savings, retirement contributions and any debt payment above the minimum.
Treat the percentages as a compass, not a verdict. If rent in your city eats 45% on its own, your needs may sit at 60% for a while — the rule still helps, because every point you move from wants into the 20% bucket compounds. Start where you are and nudge the split a few points at a time.
Frequently asked questions
Is the 50/30/20 rule realistic in an expensive city?
Often not exactly — housing alone can break the 50% needs cap. Many people in high-rent cities aim for 60/25/15 instead. The value of the rule is the direction it pushes: needs down where possible, the savings bucket up.
Do minimum debt payments count as needs or savings?
Minimum payments are needs — you must pay them to stay current. Anything above the minimum counts in the 20% savings and debt-payoff bucket.
My income changes every month. How do I use this?
Budget from your lowest typical month, not your average. In better months, sweep the extra straight into the savings bucket before it turns into wants.
Is my data sent anywhere?
No. Every calculation runs in your browser. Nothing you type ever leaves your device.
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