What is the 50/30/20 budget rule?

The 50/30/20 rule allocates 50% of after-tax income to needs (rent, groceries), 30% to wants (dining, entertainment), and 20% to savings and debt repayment.

50/30/20 Budget Calculator

Split monthly income into needs, wants, and savings targets.

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Monthly net income ($)

Needs (%)

Wants (%)

Savings / debt (%)

About This Calculator

The 50/30/20 rule — popularized by Senator Elizabeth Warren's book 'All Your Worth' — divides after-tax income into needs (50%), wants (30%), and savings/debt (20%). It's not a rigid requirement but a useful starting framework, especially for people building a budget for the first time.

Estimates only — not financial, tax, legal, or investment advice. Verify important results with a qualified professional before making decisions.

needs = income × needs%; wants = income × wants%; savings/debt = income × savings%