Budget Calculator (50/30/20 Rule)
Apply the popular 50/30/20 budgeting rule to your income. Customize your own percentages and see a complete monthly and annual breakdown.
How to Use This Calculator
Enter your after-tax monthly income, or optionally your annual salary and the monthly amount will auto-calculate. The 50/30/20 rule allocates 50% of your income to needs, 30% to wants, and 20% to savings. You can customize these percentages to match your financial situation. The calculator shows the dollar amounts for each category, both monthly and annual, along with examples of what falls into each category.
How the 50/30/20 Budget Works
Created by Senator Elizabeth Warren, the 50/30/20 rule is a simple budgeting framework that divides your after-tax income into three categories: needs (50%), wants (30%), and savings (20%). Needs are essential expenses you cannot avoid. Wants are discretionary spending that improves your quality of life. Savings includes debt repayment beyond minimums, retirement contributions, and building an emergency fund. The rule is flexible — you can adjust the percentages based on your circumstances. The key is having a clear framework that helps you make intentional spending decisions.