Budget Calculator
Take control of your finances with our comprehensive budget calculator. Plan your spending using the proven 50/30/20 rule, track your expenses across multiple categories, and achieve your savings goals. Get personalized recommendations to optimize your budget and improve your financial health.
How to Use the Budget Calculator
Enter Your Monthly Income
Input your gross monthly income (before taxes). Include salary, bonuses, side gig income, or any regular income sources.
List Your Expenses
Add each expense by category. Be specific with descriptions (e.g., 'Rent - apartment', 'Netflix subscription'). Include all regular monthly expenses.
Categorize Each Expense
Select the appropriate category for each expense. The calculator will automatically classify them as needs, wants, or savings.
Set Your Savings Goal
Specify what percentage of your income you want to save. The default is 20%, but adjust based on your financial goals.
Analyze Your Budget
Click 'Analyze Budget' to see your complete breakdown, 50/30/20 rule comparison, and savings goal status.
Review the Results
Check which categories are over/under budget. Read personalized recommendations to optimize your spending.
Export and Track
Download your budget as CSV or JSON for tracking. Update monthly and adjust categories based on actual spending.
Key Budgeting Concepts
50/30/20 Rule
A budgeting framework allocating 50% to needs, 30% to wants, and 20% to savings. Provides structure and balance for financial planning.
Emergency Fund
3-6 months of living expenses set aside for unexpected events. Prevents high-interest debt when emergencies occur.
Savings Rate
The percentage of income you save after expenses. Higher savings rates accelerate wealth building and financial security.
Budget Flexibility
Adjusting categories based on life circumstances. Budgets aren't rigid; adapt them as your situation changes throughout the year.
Frequently Asked Questions
What is the 50/30/20 rule?▼
The 50/30/20 rule is a budgeting framework that recommends allocating 50% of your income to needs (housing, food, utilities), 30% to wants (entertainment, dining out), and 20% to savings or debt repayment. This provides a balanced approach to managing your finances.
How often should I update my budget?▼
You should review and update your budget monthly. Track your actual spending against your budget to identify areas where you're overspending or underspending. Adjust as needed based on life changes, income changes, or spending patterns.
What counts as 'needs' vs 'wants'?▼
Needs are essential expenses required for survival: housing, food, utilities, insurance, healthcare, and transportation. Wants are discretionary expenses: entertainment, dining out, hobbies, travel, and subscriptions. The distinction can vary based on individual circumstances.
How much should I save monthly?▼
Financial advisors typically recommend saving 20% of your gross income. However, this depends on your financial goals, current savings, and life stage. Even starting with 10% is beneficial; increase gradually as your income grows.
What if my expenses exceed my income?▼
If expenses exceed income, you need to make difficult choices: reduce discretionary spending, cut housing costs (downsize), find additional income, or address high-interest debt. Start by eliminating wants and then evaluate needs that might be reduced.
Should I include debt payments in my budget?▼
Yes, minimum debt payments should be included as part of your needs. Credit cards, loans, and other obligations must be budgeted for. Extra payments toward debt can come from your wants category if you prioritize debt reduction.
How can I stick to my budget?▼
Track spending daily or weekly, use budgeting apps, separate accounts for different categories, automate savings transfers, and review progress regularly. Be flexible and realistic about your categories. Celebrate wins when you stay on budget.
What's an emergency fund and why do I need one?▼
An emergency fund is 3-6 months of living expenses saved for unexpected situations. It prevents you from going into debt for car repairs, medical emergencies, or job loss. Start with $1,000, then build toward 3-6 months of expenses.