Budget Calculator — Manage Your Monthly Finances
Break down your monthly income into expense categories and compare against the 50/30/20 budgeting rule. See also Savings Calculator and Net Worth Calculator.
How the Budget Calculator Works
Enter your monthly after-tax income and allocate amounts to each expense category. The calculator totals your expenses, shows the remaining balance (surplus or deficit), displays each category as a percentage of income, and compares your spending against the popular 50/30/20 budgeting rule. This helps you identify areas where you may be overspending and opportunities to save more.
The 50/30/20 Budget Rule Formula
Needs = 50% × After-Tax Income (housing, food, utilities, insurance, transport)
Wants = 30% × After-Tax Income (entertainment, dining out, subscriptions)
Savings = 20% × After-Tax Income (savings, investments, extra debt payments)
Remaining = Income − Total Expenses
Category % = (Category Amount / Income) × 100
Example Budget Breakdown
Monthly Income: $5,000
Housing: $1,500 (30%), Transportation: $400 (8%)
Food: $500 (10%), Utilities: $200 (4%)
Insurance: $300 (6%), Debt: $200 (4%)
Savings: $500 (10%), Entertainment: $200 (4%)
Other: $150 (3%)
Total Expenses: $3,950 (79%)
Remaining: $1,050 (21%)
Average Monthly Budget by Income Level
| Category | $3,000/mo | $5,000/mo | $8,000/mo | % Guideline |
|---|---|---|---|---|
| Housing | $900 | $1,500 | $2,400 | 25-30% |
| Transportation | $240 | $400 | $640 | 8-10% |
| Food | $300 | $500 | $800 | 10-15% |
| Utilities | $120 | $200 | $320 | 4-5% |
| Insurance | $180 | $300 | $480 | 5-8% |
| Savings | $600 | $1,000 | $1,600 | 20%+ |
| Entertainment | $120 | $200 | $320 | 3-5% |
Frequently Asked Questions
What is the 50/30/20 rule?
The 50/30/20 rule is a budgeting guideline popularized by Senator Elizabeth Warren. It suggests allocating 50% of after-tax income to needs (housing, food, utilities), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment. It's a simple starting framework that can be adjusted to your situation.
How much should I spend on housing?
The general guideline is to spend no more than 28-30% of your gross income on housing (the "28% rule"). For after-tax income, aim for 25-35%. In high-cost areas, this may be difficult, so compensate by reducing spending in other categories.
Should I use gross or net income for budgeting?
Use your net (after-tax) income — the amount that actually hits your bank account. This gives a more realistic picture of what you have available to spend. If you have pre-tax deductions (401k, health insurance), those are already accounted for.
What if my expenses exceed my income?
If you have a deficit, look for the largest expense categories first — housing and transportation are usually the biggest. Consider reducing discretionary spending (wants), finding ways to increase income, or restructuring debt. Even small reductions across multiple categories can add up.