Split your monthly after-tax income into needs, wants and savings using the popular 50/30/20 rule.
Understanding the budget calculation
The 50/30/20 rule is a simple budgeting framework: 50% of take-home pay for needs, 30% for wants and 20% for savings and debt repayment. Enter your monthly income to see the three amounts.
It’s a starting point you can adjust to your own priorities.
Getting your answer
- Enter your monthly after-tax income.
- Read the suggested needs, wants and savings amounts.
- Adjust the split to fit your situation.
How the number is calculated
needs = income × 50%
wants = income × 30% · savings & debt = income × 20%
The default scenario, worked through
As an example, with a monthly after-tax income of 4,000, the calculator returns a monthly income of $4,000. Underneath, Needs comes out at $2,000 and Wants at $1,200. Change any field and every figure updates as you type.
Questions people ask about this
What counts as a need vs a want?
Needs are essentials like rent, groceries, utilities and minimum debt payments. Wants are discretionary — dining out, subscriptions, hobbies.
Is 50/30/20 right for everyone?
It’s a guideline, not a rule. High cost-of-living areas may need more than 50% for needs; adjust as required.
Should the 20% include debt?
Yes — it covers savings plus extra debt repayment beyond the minimums included in needs.