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Budget Calculator

Split your take-home pay with the 50/30/20 rule: half for needs, 30% for wants and 20% for savings and paying down debt.

On $5,000 a month after tax, the 50/30/20 rule gives $2,500 for needs, $1,500 for wants and $1,000 for savings and extra debt payments.

Needs (50%)
$2,500
Wants (30%)
$1,500
Savings and debt payoff (20%)
$1,000

The 50/30/20 budget by take-home pay

Take-home a monthNeedsWantsSavings and debt
$2,500$1,250$750$500
$4,000$2,000$1,200$800
$5,000$2,500$1,500$1,000
$7,500$3,750$2,250$1,500
$10,000$5,000$3,000$2,000

How this calculator works

Needs are what you must pay (housing, utilities, groceries, insurance, minimum debt payments); wants are the rest of your spending; the 20% goes to savings, investing and paying debt down faster.

What it assumes

  • A starting point: high-cost areas often need more than 50% for needs.

Questions people ask

What is the 50/30/20 rule?

A simple budget: 50% of take-home pay for needs, 30% for wants and 20% for savings and extra debt payments.

Is rent a need or a want?

Housing is a need, but paying for more space or a pricier area than necessary is partly a want.

Does the 20% include retirement contributions?

Yes, if they come out of your take-home pay. Contributions taken from your paycheck before it arrives, like a 401(k), are already saved; many people count them toward the 20% anyway.

What if my needs are more than 50%?

Take the difference from wants first, keep saving something, and look at the biggest fixed costs (housing, car, insurance) for savings.

Related calculators

  • Paycheck CalculatorWhat you take home from each paycheck after federal income tax, Social Security, Medicare and state income tax, with 2026 tax rates for every state.
  • Emergency Fund CalculatorHow big your emergency fund should be, from your essential monthly spending and the months you want to cover, and how long it takes to build.
  • Savings Goal CalculatorHow much to save each month to reach a goal by a date, counting what you have already and the interest it earns.

Sources

Updated by the RateHerald team. The maths is tested against worked examples; report a problem.

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