Budget Calculator (50/30/20)

How the 50/30/20 rule works

The rule divides your take-home pay — what lands in your account after taxes and deductions — into three buckets:

• 50% Needs — housing, groceries, utilities, insurance, transportation, minimum debt payments. The bills you can't skip.
• 30% Wants — dining out, entertainment, travel, subscriptions, upgrades. The spending that makes life fun.
• 20% Savings & debt payoff — emergency fund, retirement, investments, and any debt payments beyond the minimums.

Its power is simplicity: three numbers you can hold in your head, instead of thirty spending categories you'll abandon by March.

If your numbers don't fit

In expensive cities, needs alone can exceed 50% — that doesn't mean you're failing; it means the split becomes a target to work toward. Common adjustments: 60/20/20 in high-cost areas, or 50/20/30 (savings promoted above wants) when you're attacking debt or behind on retirement. The exact ratio matters less than having one and checking against it.

Making it stick

• Not sure what your real take-home pay is? Our Take-Home Paycheck Calculator will estimate it.
• Automate the 20% first — transfer it on payday so the budget enforces itself.
• Point the savings bucket at a concrete target with the Savings Goal Calculator.