50/30/20 budget rule
Split your income with the 50/30/20 rule: how much goes to needs, wants and savings or paying off debt.
How to use50/30/20 rule calculator
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50/30/20 budget rule: what it is for
Type your monthly take-home pay and see how much to set aside for needs, wants and the future with the 50/30/20 rule, created to simplify personal budgeting. You can adjust the percentages to fit your situation.
Each part shows the monthly amount, the yearly amount and examples of what goes in it.
How to use
- Type your take-home pay.
- Adjust the percentages, if you want.
- See the amount for each category.
When to use it
- Setting up your first budget.
- Getting out of debt with a plan.
- Deciding how much to invest each month.
Frequently asked questions
What is the 50/30/20 rule?
A simple way to organize a budget: 50% of your take-home pay for needs (housing, bills, groceries, transportation), 30% for wants (entertainment, restaurants, shopping) and 20% for savings or paying off debt.
Can I change the percentages?
Yes. People with high rent or debt might use 60/20/20 or 70/10/20, for example. What matters is having a fixed share for the future.
Is it really free?
Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 tools are free and run right in your browser.