Budget Planner (50/30/20)

The 50/30/20 rule splits your after-tax income into needs, wants and savings: a simple, proven starting point for taking control of your money.

Income Details

Needs (50%)$2,500
Wants (30%)$1,500
Savings (20%)Plan a savings goal with this amount
$1,000
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Saved in a year

$12,000

If you consistently save the 20%, that's what you'll set aside over 12 months.

Build your emergency fund first →Invest the savings and watch it grow →

50/30/20 is a guideline, not a rule. High cost-of-living areas may need more for needs; adjust the mix to your reality.

Quick guide

How to use the Budget Planner Calculator

Create a budget using the proven 50/30/20 rule. Allocate 50% for needs, 30% for wants, and 20% for savings to take control of your finances.

  1. Enter your monthly income after taxes
  2. See your budget automatically divided by the 50/30/20 rule
  3. Review the needs allocation (50%) for essentials
  4. Check your wants budget (30%) for non-essentials
  5. Plan your savings and debt payments (20%)

Related guides

The 50/30/20 budget ruleHow to save money

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Methodology

How this calculator works

Built by · Updated

Formula

  • Needs = 50% of take-home income · Wants = 30% · Savings and extra debt payments = 20%

Assumptions & limits

  • Income is your monthly take-home pay (after taxes).
  • The split is a starting point, not a rule: in high-cost cities “needs” often take more than 50%.

Sources

  • Elizabeth Warren & Amelia Warren Tyagi, All Your Worth (2005), the book that popularized the 50/30/20 rule

Educational estimates, not financial advice. Check important decisions with your lender or a licensed advisor.

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