50/30/20 Budget Calculator
Enter your after-tax income to split it the 50/30/20 way: half for needs, 30% for wants and 20% for savings. Free, no sign-up.
What actually lands in your account, after tax and deductions.
- Needs · 50%$2,500/ month$30,000 / yearRent or mortgage, groceries, utilities, transit, insurance, minimum debt payments
- Wants · 30%$1,500/ month$18,000 / yearEating out, shopping, streaming, hobbies, travel
- Savings · 20%$1,000/ month$12,000 / yearEmergency fund, retirement, investing, extra debt payments
Now keep to it, without the spreadsheet
AI Budgie turns this income into a monthly budget and tracks every dollar against it. Say “Starbucks yesterday, 5 bucks” and it’s filed under wants.
Track this budget automatically with AI BudgieFree to start. Your income comes with you.
How the 50/30/20 rule works
The 50/30/20 rule, popularized by Senator Elizabeth Warren in the book All Your Worth, splits your after-tax income into three parts. It is a starting point, not a law: its value is that it takes a minute to set up and is easy to remember.
Needs (50%) are what you must pay to live and work: housing, groceries, utilities, transportation, insurance and the minimum payment on every debt. If skipping it would cause real harm, it is a need.
Wants (30%) make life enjoyable but could be cut: restaurants, clothes beyond the basics, subscriptions, entertainment and vacations. Upgrades count here too: the need is a phone, the newest model is a want.
Savings (20%) build your future: an emergency fund of three to six months of needs, retirement contributions, investments, and anything you pay on debt above the minimum.
Questions people ask
Is the 50/30/20 rule based on income before or after tax?
After tax. Use the amount that reaches your bank account once income tax, payroll deductions and pension contributions taken at source are gone. If retirement contributions come off your pay automatically, you may count them toward your 20% savings.
Does rent count as a need in the 50/30/20 budget?
Yes. Rent or a mortgage payment is usually the biggest need. A cheaper place you could reasonably move to is the line: the extra you pay for a nicer home above that is closer to a want.
What if my needs are more than 50% of my income?
That is common where housing is expensive. Take the difference out of wants first, so savings stay at 20% if you can, for example 60/20/20. Then look for the need that can come down the most, which is usually housing, transportation or a debt that can be refinanced.
50/30/20 vs 70/20/10: which budget is better?
70/20/10 puts 70% toward living costs, 20% toward savings and 10% toward debt or giving. It suits high-cost cities and people paying off debt. 50/30/20 separates needs from wants, which makes it easier to see where to cut. Pick the one you will keep to; you can move between them as your income changes.
Is the 50/30/20 rule realistic on a low income?
Often not at first, because needs take a larger share of a small income. Treat the percentages as a direction: even saving 5% while you keep needs as low as possible builds the habit, and you can move toward 20% as your income grows.