acalculator

Where does my budget go?

Enter your monthly take-home pay and what you spend in each area to see what is left over, and how your spending splits into needs, wants and savings.

Your numbers

After tax: what reaches your bank account.
Left over each month
$1,000.00

On $5,000.00 of take-home pay a month, spending and saving $4,000.00 leaves $1,000.00.

Spending and saving
$4,000.00
Needs
$3,000.00
Wants
$600.00
Savings and debt payoff
$400.00
Needs share (50/30/20 target: 50%)
60%
Wants share (target: 30%)
12%
Savings share (target: 20%)
8%
50% for needs
$2,500.00
30% for wants
$1,500.00
20% for savings
$1,000.00

Left over each month: $1,000.00. On $5,000.00 of take-home pay a month, spending and saving $4,000.00 leaves $1,000.00.

How does my spending split into needs, wants and savings?

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Computes what is left of monthly take-home pay after spending and saving, and compares needs, wants and savings with the 50/30/20 rule.

Example with the default inputs (Take-home pay a month $5,000.00, Rent or mortgage $1,400.00, Utilities, phone and internet $250.00, Groceries and supplies $500.00, Transportation $400.00, Health and insurance $250.00, Childcare and education $0.00, Loan payments $200.00, Eating out and entertainment $300.00, Shopping and other $300.00, Savings and investments $400.00, Credit card and extra debt payments $0.00): On $5,000.00 of take-home pay a month, spending and saving $4,000.00 leaves $1,000.00.

Method: left over = take-home pay − (needs + wants + savings); each group’s share = group ÷ take-home pay × 100, compared with 50% needs, 30% wants and 20% savings.

  • All amounts are per month, and income is take-home pay (after tax), as the 50/30/20 rule uses.
  • Needs are housing, utilities, groceries, transportation, health, childcare and required loan payments; wants are eating out, entertainment and other spending; savings include credit card payments and extra debt payments, as in All Your Worth.
  • The 50/30/20 split is a rule of thumb from Elizabeth Warren and Amelia Warren Tyagi’s book All Your Worth, not an official standard.
  • An empty spending box counts as $0.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Take-home pay a month $4,200.00, Rent or mortgage $1,300.00, Utilities, phone and internet $220.00, Groceries and supplies $450.00, Transportation $350.00, Health and insurance $180.00, Loan payments $150.00, Eating out and entertainment $250.00, Shopping and other $200.00, Savings and investments $500.00, Credit card and extra debt payments $100.00 gives Needs $2,650.00, Wants $450.00, Savings and debt payoff $600.00, Spending and saving $3,700.00, Left over each month $500.00, Needs share (50/30/20 target: 50%) 63.095238%, Wants share (target: 30%) 10.714286%, Savings share (target: 20%) 14.285714%, 50% for needs $2,100.00, 30% for wants $1,260.00, 20% for savings $840.00.Source: CFPB monthly budget (income − spending); hand calculation in content.mdx
  2. Take-home pay a month $6,000.00, Rent or mortgage $3,000.00, Eating out and entertainment $1,800.00, Savings and investments $1,200.00 gives Needs share (50/30/20 target: 50%) 50%, Wants share (target: 30%) 30%, Savings share (target: 20%) 20%, Left over each month $0.00.Source: Warren and Warren Tyagi, All Your Worth (2005): 50% needs, 30% wants, 20% savings; hand calculation in content.mdx
  3. Take-home pay a month $3,000.00, Rent or mortgage $1,800.00, Groceries and supplies $600.00, Transportation $500.00, Eating out and entertainment $300.00 gives Spending and saving $3,200.00, Left over each month -$200.00, Needs share (50/30/20 target: 50%) 96.666667%.Source: CFPB monthly budget: expenses above income leave a shortfall; hand calculation in content.mdx

How the budget is worked out

All amounts are per month.

  • needs = rent or mortgage + utilities + groceries + transportation + health and insurance + childcare + loan payments
  • wants = eating out and entertainment + shopping and other
  • savings = savings and investments + credit card and extra debt payments
  • spending and saving = needs + wants + savings
  • left over = take-home pay − spending and saving

The chart splits spending and saving into needs, wants and savings, so its total is the spending, also when it is more than the take-home pay.

Each group's share is the group ÷ take-home pay × 100. The 50/30/20 amounts are 0.5, 0.3 and 0.2 × take-home pay. Empty boxes count as $0.

Assumptions

  • Income is take-home pay: after tax and paycheck deductions.
  • Credit card payments and extra debt payments count as savings, as in All Your Worth; required loan payments are needs.
  • The 50/30/20 split is a rule of thumb, not an official standard.

Worked examples by hand

$4,200 of take-home pay. Needs = 1,300 + 220 + 450 + 350 + 180 + 0 + 150 = $2,650 (2,650 ÷ 4,200 = 63.1%). Wants = 250 + 200 = $450 (10.7%). Savings = 500 + 100 = $600 (14.3%). Spending and saving = $3,700. Left over = 4,200 − 3,700 = $500. The 50/30/20 amounts are $2,100, $1,260 and $840.

An exact 50/30/20 month. Take-home pay $6,000; needs $3,000, wants $1,800, savings $1,200. Shares = 50%, 30%, 20%. Left over = $0.

Spending more than you earn. Take-home pay $3,000; rent $1,800, groceries $600, transportation $500, eating out $300. Spending = $3,200. Left over = −$200. Needs are 2,900 ÷ 3,000 = 96.7% of take-home pay.

Other questions people ask

How do I make a monthly budget?

List your monthly take-home income, list your spending, and subtract the spending from the income. If the income is larger, you have money left to save or spend; if the spending is larger, look for expenses to cut. This is the method of the CFPB's monthly budget tool.

What is the 50/30/20 rule?

A rule of thumb from Elizabeth Warren and Amelia Warren Tyagi's 2005 book All Your Worth: spend up to 50% of take-home pay on needs, 30% on wants, and put at least 20% into savings and paying off debt. On $6,000 a month that is $3,000, $1,800 and $1,200.

Is the 50/30/20 rule based on gross or take-home pay?

Take-home pay: income after tax. Paycheck deductions for health insurance or retirement savings are already out of take-home pay, so do not count them again as spending.

What counts as a need and what counts as a want?

Needs are the bills you must pay: housing, utilities, groceries, transportation to work, insurance, childcare and required loan payments. Wants are the rest of your spending: eating out, entertainment, travel, shopping and subscriptions. Savings include credit card payments and extra payments on debt.

What if my needs are more than 50%?

Then there is less room for wants and savings. The rule is a guide, not a requirement. In a high-cost area, housing alone can take most of the 50%; the calculator shows your real split so you can decide where to adjust.

What if I spend more than I earn?

The amount left over shows as negative. The CFPB suggests looking through your budget for expenses to cut, and a nonprofit financial counselor can help.