The 50/30/20 rule
Spend about 50% of after-tax income on needs, 30% on wants and put 20% toward savings and debt repayment. It is a starting point. In high-cost areas needs can run above 50%, and the goal is simply to see where your money goes.
50/30/20 Budget Calculator
Enter your monthly take-home pay, list your expenses and tag each as a need, a want or savings. The bars show how your plan compares with the 50/30/20 rule. The rows are examples, so replace them with your own.
Last updated: October 2026ExpenseTypeAmount
How it works
Needs, wants and savings
Needs are costs you must pay to live and work: rent, groceries, utilities, transportation, insurance and minimum debt payments. Wants are optional, like dining out, streaming and shopping. Savings cover retirement accounts such as a 401(k) or Roth IRA, an emergency fund and extra debt payments.
Frequently asked questions
What is the 50/30/20 budget rule?
It splits after-tax income into 50% needs, 30% wants and 20% savings and debt repayment. It is a starting point you can adjust to your situation.
What counts as a need and what counts as a want?
Needs include rent or mortgage, groceries, utilities, insurance, basic transportation and minimum debt payments. Wants include dining out, streaming, travel and shopping beyond the basics.
How big should my emergency fund be?
A common guideline is three to six months of essential expenses, kept in an easy-to-access account such as a high-yield savings account.
What if my needs are more than 50% of my income?
This is common in expensive cities. Trim wants first, look for ways to cut large fixed costs, or raise income. Saving even 10% is better than saving nothing.
Should I use gross or take-home pay?
Use take-home pay, the amount that reaches your bank account after taxes and payroll deductions.
Is my budget saved?
No. It stays in your browser and is cleared when you close or refresh the page.