50/30/20 Budget Calculator
A simple plan for every paycheque
The 50/30/20 rule is an easy way to budget your take-home pay. You put 50% toward needs, 30% toward wants, and 20% toward savings and paying down debt. Enter your monthly income to see what each share works out to.
Your Income
Use your pay after taxes and deductions. That is the money that actually lands in your account, so it is what you plan around.
The essentials you cannot skip. Rent or mortgage, utilities, groceries, transportation, insurance, and minimum debt payments.
Example: on $5,000 a month you have $2,500 for a $1,700 rent, $300 groceries, $200 hydro and internet, and $300 for a car payment and gas.
The lifestyle extras that make life enjoyable but are not strictly required. Dining out, streaming, hobbies, travel, and shopping.
Example: on $5,000 a month you have $1,500 for restaurants, a few subscriptions, a gym membership, and a weekend trip fund.
Building your future and paying off debt faster. Emergency fund, retirement contributions, investments, and extra payments beyond the minimum.
Example: on $5,000 a month you have $1,000 to split between an emergency fund, a retirement account, and paying down a credit card faster.
Let Do Budget do the sorting
Guessing your actual needs and wants is the hard part. Do Budget automatically sorts every transaction into needs, wants, and savings, then tracks your 50/30/20 split for you month after month.
Start your free trialFrequently asked questions
What is the 50/30/20 rule?
The 50/30/20 rule is a simple budgeting guideline: spend 50% of your after-tax income on needs, 30% on wants, and 20% on savings and paying off debt. It was popularized by Senator Elizabeth Warren and is an easy starting point because it uses just three buckets instead of dozens of line items.
What counts as a need versus a want?
Needs are the essentials you cannot skip: rent or mortgage, utilities, groceries, transportation to work, insurance, and the minimum payments on your debts. Wants are the extras that make life enjoyable but are not required: dining out, streaming services, hobbies, travel, and shopping. A useful test is to ask whether you would still pay for it if money were tight.
Should I use gross or net income?
Use your net income, which is your take-home pay after taxes and payroll deductions. That is the money that actually lands in your account, so it is what you plan around. If your employer already deducts retirement contributions before you are paid, you can count those toward your 20% savings.
What if my needs are more than 50% of my income?
That is common in expensive cities, and it does not mean you are failing. Treat 50/30/20 as a target, not a hard rule. You might run 60/20/20 or 60/30/10 for a while. Use the adjustable split above to model your real situation, and aim to shift back toward 20% savings as your income grows or your fixed costs come down.
Where does debt repayment go?
Minimum required payments count as needs because you have to make them. Anything extra you pay to clear debt faster counts toward your 20% savings and debt bucket, since paying down high-interest debt builds your net worth just like saving does.
A guideline, not a rule. If your rent is high or your city is expensive, needs may run past 50%. The goal is to stay aware of the balance and pay yourself first.