Budget Calculator (50/30/20)

The 50/30/20 rule divides your after-tax income into three categories: 50% for needs (rent, groceries, utilities, minimum debt payments), 30% for wants (dining, entertainment, subscriptions), and 20% for savings and extra debt repayment. It was popularised by Senator Elizabeth Warren in her book "All Your Worth."

Needs are essential expenses you cannot live without: housing, groceries, utilities, basic transportation, healthcare, and minimum loan payments. Wants are non-essential: eating out, streaming services, gym memberships, travel, and entertainment. When in doubt, ask: "could I survive without this?" If yes, it's a want.

No — it's a guideline, not a law. People in high cost-of-living cities often need 60–70% for needs. Aggressive savers might target 30–40% for savings. Low earners may struggle to get below 60% for needs. Use the custom sliders in this calculator to find a split that actually works for your situation.