50/30/20 Budget Calculator

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This 50/30/20 rule calculator divides your budget into three categories: 

50% for needs

30% for wants

20% for savings & debt repayment

(Psst… Give a moment for the calculator to upload.)

How to use the 50/30/20 budget calculator

1. Input your monthly income

Use your net monthly income and write it in the first field.

2. Get your 50/30/20 budgeting results

The calculator will automatically calculate how much money should go toward each category based on the 50/30/20 rule: 50% of your income should go toward needs, 30% toward wants, and 20% toward savings.

Disclaimer: The content provided is for informational purposes only and should not be considered financial advice. Consult a financial professional for personalized guidance on budgeting and managing your finances. 

The 50/30/20 rule in a nutshell

Here’s the 50/30/20 rule and budgeting in a nutshell: 


The 50/30/20 budget rule is based on your monthly after-tax income, meaning the money you take home after taxes and other deductions have been removed. It doesn’t include any pre-tax contributions like retirement savings or health insurance.

Your income is then split into three categories:

  • Needs (50%)
  • Wants (30%)
  • Savings (20%).
50/30/20 Budget - Pie Chart | SaturdayGift
50/30/20 Rule (Pie Chart)

50% – Needs (must-haves)

The 50% of your income allocated for necessities should cover all the essential expenses necessary to live comfortably. These include but are not limited to:

  • Rent/mortgage payments
  • Utilities (electricity, water, gas)
  • Groceries
  • Transportation costs (car payment, gas, public transportation)
  • Minimum loan payments (the Savings and Debt Repayment category will cover the rest)

30% – Wants (nice to haves)

The 30% allocated for wants is for non-essential expenses and discretionary spending that bring joy and happiness to your life. These can include:

  • Dining out
  • Entertainment (movies, concerts, events)
  • Shopping (clothing, gadgets, etc.)
  • Travel and vacations
  • Hobbies/activities

20% – Savings and Debt Repayment

The remaining 20% should go towards your savings. 

Some of the categories include:

  • Emergency fund
  • Retirement savings
  • Sinking funds
  • Additional debt payments
  • Other investments

It’s important to prioritize saving for emergencies and retirement, but don’t neglect paying off debts.

Did you know?

The 50/30/20 rule was made famous by U.S. Senator Elizabeth Warren and her daughter Amelia Warren Tyagi in their book “All Your Worth: The Ultimate Lifetime Money Plan.”

What if my Income changes?

If your income changes, revisit this free budget calculator to calculate new percentages. 

You may need to adjust your budget accordingly.

It’s essential to continuously review and update your budget to ensure it reflects your current financial situation.

If your income increases, but the expenses in your needs category stay the same, consider increasing the amount you allocate towards savings or wants. 

Conversely, if your income decreases, focus on reducing spending in the wants category.

If your needs category exceeds 50%, it may be time to re-evaluate your necessary expenses and see where you can make cuts or adjustments.

Remember, the 50/30/20 rule is a guideline and can be adjusted to fit your financial situation. 

And not all budgeting advice is geared toward high-income households. The 50/30/20 rule can be applied to any income level, helping you prioritize your spending and savings regardless of your salary.

50/30/20 Budget Template

Check out these cute printable 50/30/20 budget templates. You can find them in this post:

Other Free Budget Planner Templates

It’s important to find a budgeting system that works for you. 

If the 50/30/20 rule doesn’t fit your lifestyle or financial goals, here are some other free budget templates to try out:

The key is to find a budget plan that works for you and allows you to manage your money effectively. 

Personal finance is not a one-size-fits-all approach, so explore different methods and find what works best for you. 

Happy budgeting!