Home › Budget · Updated 2026-10-15
50/30/20 budget calculator
The 50/30/20 rule is a simple way to budget: about half of your take-home pay for needs, 30% for wants, and 20% for savings and paying down debt. Enter your monthly after-tax income to see your targets, and adjust the percentages to fit your life.
- Enter your numbersDefaults are realistic examples; replace them with yours.
- Read results instantlyEverything updates as you type. Nothing is sent anywhere.
- Check the assumptionsSee exactly how we calculate, below.
How we calculate
Needs = income × 50%, Wants = income × 30%, Savings = income × 20%
- Use take-home (after-tax) pay, including any regular side income.
- Minimum debt payments count as needs; extra payments count toward savings.
Understanding your results
If your needs alone exceed 50%, that's common in high-cost areas. Try 60/20/20 and look for one or two fixed costs to trim.
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Frequently asked questions
Where does the 50/30/20 rule come from?
It was popularized by Senator Elizabeth Warren and Amelia Warren Tyagi in the book All Your Worth as an easy starting framework.
Is rent a need or a want?
Basic housing is a need. Paying for a much bigger or pricier place than you require is partly a want.
Should I use gross or net income?
Net (take-home) income. Taxes and payroll deductions are already gone before you budget.