50/30/20 Budget Calculator
Split your after-tax income into needs (50%), wants (30%), and savings (20%) with the popular 50/30/20 rule.
Calculator
Needs (50%)
$2,000
Wants (30%)
$1,200
Savings (20%)
$800
Projection
What is 50/30/20 budget?
The 50/30/20 rule is a simple budgeting framework popularized by Senator Elizabeth Warren. It divides your after-tax income into three buckets: 50% for needs, 30% for wants, and 20% for savings and debt repayment.
Example
With $4,000 take-home pay, you would allocate $2,000 to needs, $1,200 to wants, and $800 to savings.
Money-saving tips
- •If you live in a high-cost area, needs may exceed 50% — adjust wants first.
- •Automate the 20% savings transfer so it happens before you can spend it.
- •Use the 20% for savings, investments, and extra debt payments.
Common mistakes
- •Counting minimum debt payments as savings — they go in needs.
- •Treating all 30% of wants as discretionary dining out.
Financial definitions
- Needs
- Essential expenses required to live and work.
- Wants
- Non-essential spending that improves lifestyle.
Frequently asked questions
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Estimated reading time: 4 min