Create a personalized monthly budget using the 50/30/20 rule, zero-based budgeting, or 70/20/10 method. Track expenses, income, and savings goals.
Allocate 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment.
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A well-planned budget is the foundation of financial health. Our budget calculator helps you allocate your after-tax income using three proven methods: the 50/30/20 rule, zero-based budgeting, and the 70/20/10 rule. Enter your income, choose a budgeting method, and see exactly where every dollar should go. Whether you're managing your first paycheck or optimizing a six-figure salary, this tool provides actionable spending targets based on your take-home pay.
The 50/30/20 budget rule, popularized by Senator Elizabeth Warren, divides your after-tax income into three categories: 50% for needs (rent, utilities, groceries, insurance), 30% for wants (dining out, entertainment, subscriptions), and 20% for savings and debt repayment. This simple framework gives you clear spending guardrails without tracking every penny.
Formula
Needs ≤ 50% × After-Tax IncomeKnow exactly how much you can spend on housing, groceries, and entertainment each month without guessing.
Automatically allocate a portion of your income toward savings to prepare for unexpected expenses.
Identify discretionary spending you can redirect toward credit cards, student loans, or other debts.
Try the 50/30/20 rule, zero-based budgeting, or the 70/20/10 rule to find the approach that fits your lifestyle.
Use the 50/30/20 rule as a starting framework to understand healthy spending proportions.
Use zero-based budgeting to assign every dollar a purpose and maximize debt payments.
Model different income scenarios to understand how a raise impacts your monthly budget.
Estimate your budget with new housing costs, utilities, and transportation expenses.
Combine household income and expenses to create a shared budget using the dual-income preset.
The 50/30/20 rule allocates 50% of your after-tax income to needs (housing, utilities, groceries, insurance), 30% to wants (entertainment, dining out, subscriptions), and 20% to savings and debt repayment. It was popularized by Senator Elizabeth Warren in her book 'All Your Worth.'
Zero-based budgeting assigns every dollar of income to a specific expense or savings category, with the goal of having $0 left unallocated. The 50/30/20 rule uses percentage-based categories. Zero-based is more detailed and hands-on, while 50/30/20 provides simpler guardrails.
Financial experts recommend spending no more than 28-30% of your gross income on housing. Under the 50/30/20 rule, housing falls under 'needs,' which should total 50% of after-tax income. In high-cost areas, you may need to adjust other categories.
The 50/30/20 rule suggests saving at least 20% of your after-tax income. This includes emergency fund contributions, retirement savings, and extra debt payments. If you're starting out, aim for at least 10% and gradually increase.
The 70/20/10 rule allocates 70% of after-tax income to living expenses (all bills and discretionary spending), 20% to savings and investments, and 10% to giving or additional debt repayment. It's simpler than the 50/30/20 rule with only one combined expense category.
Always budget based on net (after-tax) income — the amount that actually hits your bank account. Our calculator converts gross income to net using your tax rate so you get an accurate picture of spendable income.
If you have variable income, use your lowest expected monthly income as the baseline. Budget essentials first, then allocate extra income to savings and wants during higher-earning months. The zero-based method works well for irregular earners.
Needs are essential expenses you must pay: housing, utilities, groceries, insurance, minimum debt payments, and transportation to work. Wants are non-essential expenses: dining out, streaming services, hobbies, vacations, and upgrades beyond basic needs.