50/30/20 Budget Calculator
Split your take-home pay into needs, wants and savings using the 50/30/20 rule.
About the 50/30/20 Budget Calculator
Enter your monthly take-home pay. The calculator shows how much the 50/30/20 rule gives to needs, to wants, and to savings and extra debt repayment.
Popularised by Elizabeth Warren and Amelia Warren Tyagi in “All Your Worth” (2005), the rule puts 50% of after-tax income towards needs (housing, food, utilities, minimum debt payments), 30% to wants and 20% to savings and extra debt repayment.
The formula
Needs = 50%, wants = 30%, savings = 20% of take-home pay
Worked example
Take-home pay of 4,500 a month
- Needs: 2,250
- Wants: 1,350
- Savings and extra debt repayment: 900
Things to keep in mind
- A starting guide, not a rule for everyone; adjust the shares to your costs and goals.
Questions people ask
Does debt go in needs or savings?
Minimum payments are needs; extra payments count towards the 20%.
Is a phone a need or a want?
A basic plan is a need; the upgrade is a want. Draw the line where you'd cut if you had to.