FullCalculator

Budget Calculator

50/30/20 Rule

Custom Allocation

Formula

Needs = Income × 50%; Wants = Income × 30%; Savings = Income × 20%

Frequently Asked Questions

What is the 50/30/20 rule?
The 50/30/20 rule is a simple budgeting guideline: 50% of after-tax income goes to needs (housing, food, utilities), 30% to wants (entertainment, dining), and 20% to savings and debt repayment.
Should I use gross or net income?
Use your after-tax (net) income, which is your take-home pay after taxes and deductions. This gives a more accurate picture of what you actually have available to budget.

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