Budget Calculator: The 50/30/20 Rule

Split your income into needs, wants and savings with the popular 50/30/20 rule. Enter your monthly income after tax and change the percentages if you like.

Rent, bills, food, transport
Eating out, hobbies, subscriptions
Needs per month
–
Wants per month–
Savings and debt per month–
Percentages add up to–

How it works

The 50/30/20 rule suggests spending about 50% of income on needs, 30% on wants and 20% on savings or paying down debt. Each amount is your income multiplied by its percentage.

It is a starting point. Your own costs and goals may need a different split.

Example

On 3,000 a month, the rule gives 1,500 for needs, 900 for wants and 600 for savings and debt.

Frequently asked questions

Is 50/30/20 right for everyone?

No. In areas with high living costs, needs may take more than 50%. Adjust the percentages to fit.

What counts as a need?

Costs you must pay, such as housing, utilities, groceries, insurance, transport to work and minimum debt payments.

Where should the savings go?

That is up to you. Many people build an emergency fund first.

More free tools: Savings goal calculator · Percentage calculator · All free tools

This calculator gives estimates for information only and is not financial advice. Check figures with your lender or adviser.