50/30/20 Budget Calculator

Estimate monthly targets for needs, wants, and savings or debt repayment using the 50/30/20 budgeting guideline.

How the 50/30/20 guideline works

The guideline divides monthly after-tax income into three broad categories: 50% for needs, 30% for wants, and 20% for savings or debt repayment.

Needs

Needs generally include essential expenses such as housing, basic utilities, groceries, transportation, insurance, and minimum required debt payments.

Wants

Wants are discretionary expenses such as entertainment, dining out, subscriptions, travel, and non-essential purchases.

Savings and debt repayment

The 20% category may include emergency savings, retirement contributions, other savings goals, or debt payments above required minimums.

Worked example

With $6,000 of monthly after-tax income, the guideline produces targets of $3,000 for needs, $1,800 for wants, and $1,200 for savings or debt repayment.

How to use the optional actual amounts

Enter your current monthly spending or saving amounts if you want to compare your real allocation with the guideline. These fields are optional and do not change the recommended 50/30/20 targets.

Important limitation

The 50/30/20 framework is a general budgeting guideline, not a requirement. Housing costs, family size, location, income level, debt obligations, and personal priorities can make a different allocation more practical.

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