Is it based on gross or take-home pay?

Take-home pay: the amount that actually reaches your account after tax and other deductions, not the gross salary on your contract.

What if my needs are more than 50%?

It's very common, especially where rent is high. Change the percentages in the calculator to see your real split, cut from wants first and protect your savings as far as you can.

What if my income changes from month to month?

Use the average of several months, or better still a quiet month. That way the plan holds up when less comes in.

50/30/20 budget calculator

Split your take-home pay into needs, wants and savings.

The calculator needs JavaScript, which is turned off in your browser. The explanation below shows how to work it out by hand.

How it works

The 50/30/20 rule divides what you take home each month into three parts: 50% for what you need, 30% for what you want and 20% for savings or paying down debt. It was made popular by Elizabeth Warren and Amelia Warren Tyagi in their book All Your Worth (2005).

How to work it out by hand: add up what reaches your account in a normal month, after tax, and multiply it by 0.50, by 0.30 and by 0.20. If you get an annual bonus, spread it across twelve months.

Needs: housing, utilities, basic groceries, getting to work, essential insurance and the minimum payments on your debts.
Wants: restaurants, trips, clothes you don't need, subscriptions, gifts and entertainment.
Savings and debt: your emergency cushion, saving for goals and any debt repayment above the minimum.

It is a starting point, not a law. If housing takes more than half, cut from wants first and protect your savings as far as you can.

Read the full guide: The 50/30/20 rule: what it is and how to apply it to your income

Frequently asked questions

Is it based on gross or take-home pay?: Take-home pay: the amount that actually reaches your account after tax and other deductions, not the gross salary on your contract.
What if my needs are more than 50%?: It's very common, especially where rent is high. Change the percentages in the calculator to see your real split, cut from wants first and protect your savings as far as you can.
What if my income changes from month to month?: Use the average of several months, or better still a quiet month. That way the plan holds up when less comes in.