What is the 50/30/20 budget rule?
It's a simple way to split your take-home pay into three buckets. It's a starting point, not a strict rule.
50% for needs
Rent or mortgage, utilities, groceries, insurance, transportation and minimum debt payments. The things you'd have to pay no matter what.
30% for wants
Eating out, streaming, hobbies, shopping and trips. The things that make life fun but could be cut back.
20% for savings and debt
Your emergency fund, retirement, savings goals and any payments above the minimum on your debts.
A worked example
Say you take home $2,100 every two weeks. That's 26 paychecks a year, or about $4,550 a month.
- Needs: $2,275 a month, or $1,050 per paycheck.
- Wants: $1,365 a month, or $630 per paycheck.
- Savings and debt: $910 a month, or $420 per paycheck.
Add what you spend now and the calculator shows how close you are to each target.
How this 50/30/20 calculator works
It turns your pay into a monthly amount using how often you're paid: weekly (52 a year), every two weeks (26), twice a month (24) or monthly (12). Then it splits that by 50%, 30% and 20%. Use the pay that actually reaches your account, after taxes and workplace deductions.
What if my needs are more than 50%?
That's common, especially with high rent. Try a split like 60/20/20 for now, and look for one need to trim, such as a phone plan or insurance. Small changes add up, and the goal is progress, not perfection.
Check in once a month
Your pay and bills change, so revisit your split every month or two. If you get a raise, try sending part of it straight to savings before it gets absorbed into everyday spending.
Next step: set a target in the savings goal calculator.
Questions people ask
Is 50/30/20 based on gross or net pay?
Take-home (net) pay, after taxes. If money for retirement comes out of your paycheck, you can count it toward your 20%.
Do debt payments count as needs or savings?
Minimum payments are needs. Anything extra you pay to get out of debt sooner counts toward the 20%.
What if I'm paid every two weeks?
Choose “Every 2 weeks.” The calculator uses 26 paychecks a year, so the monthly amount is a little more than two paychecks.
Are my numbers saved?
Yes. Everything you type saves automatically in this browser, so it’s here next time, and nothing is sent anywhere. Private windows and clearing your browsing data don’t keep it, so tap Save or print: Save a copy downloads a small file you can open later, or on another device, with Open a saved copy, and Print / Save as PDF gives you a copy to keep.