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50/30/20 Budget Calculator

The 50/30/20 is a simple budgeting strategy designed to work for almost anyone. It takes a person’s net income (money after taxes) and splits it into three categories: needs, wants, and savings. With the Lendstart 50/30/20 budget calculator, you can easily make a budget that fits your finances.

50/30/20 calculator

Monthly after-tax income






Savings and Debt Repayment


How to Use a 50/30/20 Budget Calculator

First, you’ll need your total net income – your take-home pay. Input this number into the “Monthly after-tax income” section of the calculator.
The calculator will automatically break down your income into the following categories:

  • Needs: This refers to any essential spending. It includes rent, mortgage, groceries, utilities, and other regular bills.
  • Wants: This refers to things you want but don’t have to have. It includes entertainment, recreation, splurges, and other non-essentials. It also includes such extras as dining out or luxury purchases.
  • Savings and Debt Repayment: This indicates how much money should go toward savings, repaying debt, or other financial goals (ex. preparing for retirement). It can also include an emergency fund.

50/30/20 Formula

The formula for calculating the 50/30/20 budget is as follows:

N = I x 0.50
W = I x 0.30
S = I x 0.20

Here’s the variable breakdown:

N = Needs or essentials
W = Wants or non-essentials
S = Savings or debt
I = Income (take-home pay after taxes)

You can use the calculator to budget for the current and future months. If your income changes significantly, input the new amount in the calculator to see where your money should be going.

50/30/20 Budget Rule Examples

  Example A Example B Example C
After-tax Income (monthly) $5,000 $8,000 $15,000
Breakdown 50% - Needs
30% - Wants
20% - Savings
50% - Needs
30% - Wants
20% - Savings
50% - Needs
30% - Wants
20% - Savings
Money for Needs: $2,500 $4,000 $7,500
Money for Wants: $1,500 $2,400 $4,500
Money for Savings: $1,000 $1,600 $3,000

Depending on your income and expenses, you might need to adjust the numbers from month to month until you find what works for you.

Why Use a 50/30/20 Budget Calculator

This budget calculator can help in the following ways:

  • It’s easy to use for beginners and experts at budgeting. It only requires a single input – income after-tax. It fills out the rest automatically, making it easy to understand and follow.
  • It gives exact amounts. The calculator can separate your income into three categories with clear amounts. This takes out the guesswork of budgeting.
  • It creates a basic framework for future budgeting. Using the calculator can give you a baseline of where your money should go. However, you can adjust it, if needed. The 50/30/20 rule is a solid foundation for more advanced budgets later.