Budget Calculator
Turn take-home income and monthly spending into a personal or household budget, then compare your allocation with the 50/30/20 guideline.
Budget formulas and the 50/30/20 guideline
- Monthly income: income is normalized using 52 weekly or 26 biweekly payments per year, 24 semimonthly payments, or annual income divided by 12.
- Total allocated: needs + wants + savings and extra debt payments.
- Money remaining: monthly take-home income − total allocated.
- Category share: category total ÷ monthly take-home income.
- 50/30/20 comparison: 50% needs, 30% wants and 20% savings or extra debt payments.
The 50/30/20 split is a reference point, not a requirement. Housing costs, family size, health needs, debt, irregular income and local prices can justify a different allocation. Classify each expense according to whether it is essential in your situation.
Example
| Monthly income | Needs | Wants | Goals | Remaining |
|---|---|---|---|---|
| $5,000 | $3,100 (62%) | $700 (14%) | $900 (18%) | $300 (6%) |
Important limits
This tool uses the amounts you enter and does not estimate taxes, detect missing expenses, forecast investment returns or provide financial advice. Convert irregular expenses such as annual insurance, repairs and gifts to monthly averages. Results are only as complete as the entries supplied.
Related calculators
Use the Salary Calculator to normalize gross pay periods, the Debt Payoff Calculator to compare payoff strategies, or the Compound Interest Calculator to project savings growth.
Compare debt payments with gross income: use the Debt-to-Income Calculator for housing DTI, total DTI and the effect of a proposed payment.
Measure the full balance sheet: Use the Net Worth Calculator to total assets, liabilities, liquid net worth and property equity.
\n
Planning housing costs? Use the Rent Affordability Calculator to compare a gross-income guideline with your take-home cash flow, recurring costs and move-in cash.
Planning a vehicle purchase? Use the Car Affordability Calculator to turn take-home income, other commitments and ownership costs into a maximum payment and vehicle price.
Planning an ordinary household move? Use the Moving Cost Calculator to compare local movers, long-distance quotes and a DIY rental truck.
Budgeting a manufactured-home relocation? Use the Mobile Home Moving Cost Calculator to itemize transport, teardown, permits, setup, utilities and site work.