Budget Calculator
Create a monthly budget using the 50/30/20 rule based on your income.
About This Tool
The Budget Calculator helps you create a personalized monthly budget using the popular 50/30/20 framework. Enter your after-tax income and the calculator divides it into recommended amounts for needs, wants, and savings. You can then customize each category to match your actual expenses and financial goals, giving you a clear picture of where every dollar should go each month.
Budgeting is the foundation of financial health. Without a plan for your money, it is easy to overspend on non-essentials while neglecting savings, debt repayment, and emergency funds. A well-built budget does not restrict your spending — it gives you permission to spend confidently on things you value while ensuring your financial priorities are covered first. This calculator makes that process fast and straightforward.
How to Use
- Enter your monthly after-tax (take-home) income
- Review the suggested 50/30/20 split for needs, wants, and savings
- Adjust individual category amounts to fit your actual expenses
- Check whether your total spending stays within your income
- Use the summary to identify areas where you can save more
Why Budgeting Matters
Studies consistently show that people who follow a budget save more, carry less debt, and report lower financial stress. A budget reveals hidden spending patterns — that daily coffee habit, forgotten subscriptions, or impulse purchases that add up to hundreds of dollars each month. By making these patterns visible, you gain the awareness needed to redirect money toward what matters most to you, whether that is building an emergency fund, paying off student loans, or saving for a home.
The 50/30/20 rule provides an excellent starting point, but your ideal percentages may differ. Someone aggressively paying off debt might allocate 30 percent to savings and debt repayment. A high earner in a low-cost area might spend only 35 percent on needs. Use this calculator to experiment with different allocations and find the balance that supports both your current lifestyle and your long-term financial goals.