Budget Calculator (50/30/20 Rule)
Split your take-home pay into needs, wants and savings with the 50/30/20 rule or your own percentages, per month, per year and per paycheck.
The 50/30/20 rule is a simple way to plan spending: half of your take-home pay goes to needs, 30% to wants and 20% to savings and paying off debt. This budget calculator turns your pay into dollar targets for each category, per month, per year and per paycheck, and lets you change the split if your rent or goals call for different numbers.
How to use this tool
- Enter your take-home pay — what lands in your bank account.
- Choose how often you are paid.
- Keep 50/30/20 or set your own percentages (they must total 100%).
- Compare the targets with what you actually spend.
Formula
Monthly pay = Pay × periods per year ÷ 12
Category target = Monthly pay × Category % ÷ 100
Weekly pay is multiplied by 52 and every-two-weeks pay by 26 before dividing by 12, so months with an extra paycheck are spread evenly across the year.
Example
Take-home pay of $4,500 a month splits into $2,250 for needs, $1,350 for wants and $900 for savings and extra debt payments, or $10,800 a year toward savings. Someone paid $2,000 every two weeks brings home 2,000 × 26 ÷ 12 = $4,333.33 a month, so the needs target is $2,166.67.
Frequently asked questions
Who came up with the 50/30/20 rule?
It was popularised by Elizabeth Warren and Amelia Warren Tyagi in their 2005 book "All Your Worth". It is a starting point, not a strict rule.
Should I use gross or net income?
Use take-home (net) pay. Taxes and payroll deductions such as health insurance are already gone before you can spend the money. If you save for retirement through payroll, you can count that toward the 20%.
What if my needs are more than 50%?
That is common in high-rent cities. Try 60/20/20 or 70/10/20 and keep savings as close to 20% as you can; the monthly budget calculator can show where the money is going now.
Last updated: 2026-10-30