50/30/20 budget calculator
The 50/30/20 rule splits take-home pay into 50% for needs, 30% for wants and 20% for savings and debt repayment. Enter your monthly income to see your three budgets instantly.
Needs · 50%
$2,000.00
$24,000.00 a year
Wants · 30%
$1,200.00
$14,400.00 a year
Savings · 20%
$800.00
$9,600.00 a year
How to use it
- Enter your monthly take-home pay and choose your currency.
- See your needs, wants and savings budgets for the month and the year.
- Compare them with what you spend now, then adjust one category at a time.
The 50/30/20 formula
Needs = income × 0.50. Wants = income × 0.30. Savings = income × 0.20.
Needs are bills you must pay: housing, utilities, groceries, insurance, transport and minimum loan payments. Wants are choices: dining out, shopping, entertainment, travel and subscriptions. Savings covers your emergency fund, goals, investments and any extra debt repayment above the minimum.
Example
With 3,000 of take-home pay a month: 1,500 for needs, 900 for wants and 600 for savings — 7,200 saved in a year.
Frequently asked questions
What is the 50/30/20 rule?
A simple budgeting rule popularised by US senator Elizabeth Warren: spend 50% of take-home pay on needs, 30% on wants and put 20% toward savings and paying down debt.
Does the 50/30/20 rule work on a low income?
Often not exactly — on a tight income needs can take 60–70%. Treat 50/30/20 as a direction rather than a test: keep some savings every month, however small, and adjust the split to your reality.
Is debt repayment a need or savings?
Minimum payments are needs. Anything you pay above the minimum counts toward the 20% savings share.
Do this automatically in IncomeWise
Read more
Keep this plan running every month
IncomeWise tracks your spending against your split, suggests budgets and shows when you'll reach your goals. Free to start.