🧩 50/30/20 Rule Calculator
Split your take-home pay into needs, wants, and savings using the popular 50/30/20 budgeting rule.
What is the 50/30/20 rule?
The 50/30/20 rule is a simple budgeting guideline that splits your after-tax income into three broad categories: needs, wants, and savings or debt repayment. It’s designed to be easy to follow without tracking every category of spending in detail.
The formula
Needs (50%) covers essentials like housing, utilities, groceries, and minimum debt payments. Wants (30%) covers discretionary spending like dining out, entertainment, and hobbies. Savings and extra debt payoff (20%) covers building an emergency fund, retirement contributions, and paying down debt beyond the minimum.
This tool is for general educational and planning purposes only. The 50/30/20 split is a starting guideline; your ideal budget may look different depending on your cost of living, financial goals, and obligations.