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

  1. Use take-home pay (after tax and required deductions).
  2. Treat the 20% as savings, investing, or extra debt payments.
  3. 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.