50/30/20 Budget Calculator

Apply the 50/30/20 budgeting rule to your income: 50% for needs, 30% for wants, and 20% for savings and debt repayment.

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Monthly After-Tax Income

50% Needs

30% Wants

20% Savings

Needs (50%)

Rent/mortgage, utilities, groceries, insurance, minimum debt payments, transportation

Wants (30%)

Dining out, entertainment, subscriptions, shopping, hobbies, travel

Savings & Debt (20%)

Emergency fund, 401K, Roth IRA, extra debt payments, investments

The 50/30/20 Rule Explained

Popularized by Senator Elizabeth Warren, the 50/30/20 rule is the simplest effective budgeting framework. On $5,000/month after-tax income: $2,500 for needs, $1,500 for wants, $1,000 for savings and extra debt payments. Calculate your after-tax income with our Paycheck Calculator. Build your emergency fund with our Emergency Fund Calculator. Direct your 20% savings toward your 401K and Roth IRA.

FAQs

What if I can't keep needs under 50%?

In high-cost cities, needs may take 60-65%. Adjust to 60/20/20 or 65/15/20. The key is the 20% savings — protect that first.

Adapting the 50/30/20 Rule to Your Life

The 50/30/20 rule is a starting framework, not a rigid law. Here's how to adapt it:

High-cost cities (NYC, SF, LA): Needs may take 60-65%. Adjust to 60/15/25 — keep savings high even if wants shrink. High earners ($150K+): Your needs stay flat while income grows. Consider 30/20/50 — directing the extra to investments, and track growth with our Compound Interest Calculator. Debt payoff mode: Temporarily go 50/10/40 — minimize wants and throw 40% at debt using the Debt Payoff Calculator avalanche method. FIRE pursuit: Many FIRE adherents live on 30/10/60 — use our FIRE Calculator to see how an aggressive savings rate shortens your timeline.

The 50/30/20 Rule

50% Needs, 30% Wants, 20% Savings. On $5K/month: $2,500/$1,500/$1,000.