50/30/20 Budget Calculator
See a simple monthly allocation for needs, wants, and savings or additional debt payments.
Quick answer
Enter monthly after-tax income. The calculator allocates 50% to needs, 30% to wants, and 20% to savings or additional debt payments, then compares optional actual spending.
Formula used
Needs = income × 50%; wants = income × 30%; savings and extra debt payments = income × 20%.
Worked example
At $4,000 take-home pay, the guideline produces $2,000 for needs, $1,200 for wants, and $800 for savings or extra debt payments.
How to interpret the result
The rule is a starting framework, not a financial standard. High housing costs, irregular income, family needs and debt may require different percentages.
Sources and methodology
Investor.gov compound interest calculator · Consumer Financial Protection Bureau: saving. Sources explain general concepts; ToolGemini calculations use only the values you enter and the formula shown above.
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Frequently asked questions
Should I enter gross or take-home income?
Use monthly income after taxes and payroll deductions so the allocation reflects money available to spend.
Where do minimum debt payments go?
Minimum required payments are commonly treated as needs; payments above the minimum can fit the savings/debt category.
Must my budget match 50/30/20 exactly?
No. Use the comparison as a diagnostic and adapt it to your real obligations and goals.