50/30/20 Budget Calculator
Split your take-home pay into 50% needs, 30% wants and 20% savings, per week, month and year, and compare it with what you spend now.
The 50/30/20 rule splits your take-home pay three ways: half for needs, 30% for wants and 20% for savings and paying down debt. It was popularized by Elizabeth Warren and Amelia Warren Tyagi in their 2005 book All Your Worth as a simple alternative to tracking dozens of categories. Enter your pay and see what each part is worth per week, month and year.
How to use this tool
- Enter your take-home pay and how often you are paid.
- Keep the 50/30/20 split or change it, for example to 60/20/20 in a high-rent city.
- Optionally enter what you spend on needs and wants each month now.
- Use the table to set weekly, monthly and yearly limits.
Formula
Monthly pay = Pay per period × Periods per year ÷ 12 · Category = Monthly pay × Share
The shares are 50%, 30% and 20% unless you change them, and must total 100%. When you enter current spending, savings is what remains after needs and wants.
Example
With $4,800 a month after tax, needs get $2,400, wants $1,440 and savings and debt payoff $960 — about $222 a week toward savings. If you are paid $2,000 every two weeks, your monthly pay is 2,000 × 26 ÷ 12 = $4,333.33, so needs get $2,166.67, wants $1,300 and savings $866.67.
Frequently asked questions
What counts as a need?
Costs you must pay to live and work: rent or mortgage, utilities, groceries, insurance, basic transport, childcare and minimum loan payments. Upgrades on top of those — a bigger apartment, takeout, streaming services — are wants.
Should I use gross or net income?
Net, or take-home, pay after taxes. If you contribute to a 401(k) or similar plan through payroll, add that back to your pay and count it toward the 20%.
What if my needs are more than 50%?
That is common where housing is expensive. Use a split such as 60/20/20 or 60/30/10 for now, and look at the biggest fixed costs — housing and car payments — for longer-term savings.
Do extra debt payments count as savings?
Yes. Minimum payments are needs; anything you pay above the minimum belongs in the savings and debt payoff share.
Last updated: 2026-10-30