50/30/20 Budget Calculator
Split your monthly after-tax income into 50% needs, 30% wants, and 20% savings or debt.
Inputs
Result
Needs · Wants · Savings
$2,000 · $1,200 · $800
Savings/debt portion: $800.00/mo
Visual breakdown
Needs (50%)
$2,000.00
Wants (30%)
$1,200.00
Savings (20%)
$800.00
Needs $2,000.00 — 50%
Wants $1,200.00 — 30%
Savings / debt $800.00 — 20%
Formula
Needs = income × 0.50 · Wants = income × 0.30 · Savings/debt = income × 0.20. Based on after-tax (take-home) income.
Example
$4,000/mo after tax → Needs $2,000, Wants $1,200, Savings/debt $800.
Related: Monthly budget · Emergency fund · Debt payoff
How to use
- Use take-home pay (after tax and required deductions).
- Treat the 20% as savings, investing, or extra debt payments.
- Adjust splits if your area's housing cost forces a higher 'needs' share.
When it's useful
- Starting a first budget.
- Sanity-checking a category that feels off.
- Reset after a raise or move.
Common examples
$4,000/mo after tax
Needs $2,000 · Wants $1,200 · Savings $800.
$6,000/mo after tax
Needs $3,000 · Wants $1,800 · Savings $1,200.
Tight months
Cap wants first; protect savings if possible.
Frequently asked
What counts as a 'need'?
Rent, groceries, utilities, transportation to work, insurance, minimum debt payments.
Where does extra debt payoff go?
Inside the 20%. Snowball or avalanche payments are 'savings' for this rule.
What if 50% can't cover my needs?
Treat 50/30/20 as a target, not a law — high-cost cities often need 60/20/20 or 55/25/20.
Pre-tax or after-tax income?
After-tax — what actually lands in your account.
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More money & work →Informational only — not financial advice.