RAZIUN

Budget Calculator: The 50/30/20 Rule

This free budget calculator uses the 50/30/20 rule to split your monthly take-home pay into needs, wants and savings. Enter your pay, and optionally what you spend now, to see how you compare.

The 50/30/20 rule is a simple starting point: about half of your take-home pay for needs, 30% for wants and 20% for savings or paying off debt.

Lifestyle tool

50/30/20 budget planner

A popular rule of thumb: about 50% of take-home pay for needs, 30% for wants and 20% for savings or paying off debt. Add your real spending to see how you compare.

This tool runs entirely in your browser. Nothing you enter is saved or sent to RAZIUN. The 50/30/20 split is a starting point, not a rule. Adjust it to your situation.

Needs, wants and savings explained

  • Needs (50%): rent or mortgage, bills, groceries, transport and minimum debt payments.
  • Wants (30%): eating out, subscriptions, shopping, hobbies and holidays.
  • Savings and debt (20%): an emergency fund, other savings and extra debt repayments.

How to use the budget calculator

  1. Enter your monthly take-home pay, after tax.
  2. If you know them, add what you currently spend on needs and wants.
  3. Press the button to see your suggested budget and how your spending compares.

Example

If your take-home pay is 2,500 a month, the budget calculator suggests about 1,250 for needs, 750 for wants and 500 for savings or debt. If you currently spend 1,500 on needs and 600 on wants, you would have 400 left to save, which is 16% of your pay.

When the 50/30/20 rule does not fit

The rule is a guide, not a strict law. For example, in expensive cities rent alone can take more than half of your pay. In that case, start by protecting your savings, even if it is less than 20%, and then look for ways to reduce your biggest costs.

Looking for ways to cut bills this winter? Try our guide to lowering your heating bill.

Frequently asked questions

Should I use pay before or after tax?

Use your take-home pay, which is the amount that actually reaches your bank account each month.

Is my data saved?

No. The budget calculator runs in your browser, and nothing is saved or sent to RAZIUN.