50/30/20 Budget Calculator
Split your after-tax income the 50/30/20 way: 50% needs, 30% wants, 20% savings and debt payoff — the simplest budget that actually works.
Needs (50%)
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Wants (30%) —
Savings & debt payoff (20%) —
Savings per year —
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How it works
Needs = income × 0.50; wants = × 0.30; savings & debt = × 0.20Frequently Asked Questions
How does the 50/30/20 rule work?
Take your after-tax income and cap needs (rent, groceries, utilities, minimum debt payments, insurance) at 50%, wants (dining out, subscriptions, travel) at 30%, and put 20% toward savings and extra debt payments.
What counts as a need vs a want?
A need is something with real consequences if unpaid: housing, basic food, transport to work, insurance, minimum payments. Upgrades of needs — a nicer apartment, a newer car — the upgrade portion is a want.
What if my needs exceed 50%?
Common in high-cost cities. Shrink wants first to protect the 20% savings slice; the rule's real point is that saving is a fixed line item, not what's left over.