50/30/20 Budget Calculator
Allocate your income using the popular 50/30/20 budgeting rule.
Housing, utilities, groceries, insurance, minimum debt payments
Entertainment, dining out, hobbies, subscriptions
Emergency fund, retirement, investments, extra debt payments
Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
What is the 50/30/20 budget rule?
The 50/30/20 rule allocates after-tax income as: 50% for needs (housing, utilities, groceries, minimum debt payments), 30% for wants (entertainment, dining out), and 20% for savings and extra debt payments.
What counts as needs vs wants?
Needs are essential expenses: housing, utilities, groceries, transportation, insurance, and minimum debt payments. Wants are non-essential: dining out, entertainment, subscriptions, and upgrades beyond basic needs.
Is 50/30/20 good for everyone?
It is one framework among many. High cost-of-living areas may require more for needs; those with high debt may allocate more to savings/debt; high earners might save more than 20%.
What if I cannot afford 20% savings?
Many people save less than 20% - even 5% or 10% contributes to goals over time. Savings rates can increase as expenses decrease or income grows.
What are alternatives to 50/30/20?
Alternatives include: 60/20/20 (for high cost areas), 80/20 (simple save-20%-spend-rest), zero-based budgeting (every dollar assigned), or envelope budgeting for those who need strict categories.
How do I track my spending by category?
Use budgeting apps, spreadsheets, or bank category features. Review transactions weekly or monthly to see if you are staying within your budgeted percentages for each category.