Free 50/30/20 Budget calculator with clear step-by-step results.
The 50/30/20 rule splits after-tax income into needs, wants and savings. It is a simple guardrail for budgeting without itemising every expense.
Formula
Needs = 50% × income; Wants = 30% × income; Savings = 20% × income
A guideline only — adjust the split to your actual cost of living.
The 50/30/20 rule splits after-tax income into needs, wants and savings. It is a simple guardrail for budgeting without itemising every expense.
A rule-of-thumb allocation keeps essentials covered while still building savings.