50/30/20 Budget Calculator

Break down your income using the 50/30/20 rule. Allocate your monthly income to needs, wants, and savings to build a sustainable budget.

Calculator Inputs

Monthly After-Tax Income

Needs50%

0%100%

Wants30%

0%100%

Savings20%

0%100%

Needs

$2,500

50% of income

Wants

$1,500

30% of income

Savings

$1,000

20% of income

Annual Savings

$12,000

10-Year Savings (at 7% return)

$174,094

If invested in a diversified portfolio

Budget Breakdown

The 50/30/20 Budget Rule Explained

The 50/30/20 rule is a simple budgeting framework: spend 50% of your after-tax income on needs (rent, groceries, insurance, minimum debt payments), 30% on wants(dining out, entertainment, subscriptions), and put 20% toward savings and debt repayment (emergency fund, investments, extra debt payments).

Customizing the Percentages

The 50/30/20 split is a starting point, not a rigid rule. If you live in a high-cost area, your needs might exceed 50%. If you are aggressively saving for a down payment or paying off debt, you might push savings to 30% or higher. Adjust the sliders to match your actual situation and goals.

The Power of Consistent Saving

Even 20% of a modest income grows dramatically over time with compound interest. Saving $1,000/month at a 7% annual return grows to over $173,000 in 10 years. The 10-year projection above shows what your savings allocation could become if invested consistently.