50/30/20 Budget Calculator
Enter your monthly income and see how much to put toward needs, wants and savings.
The money you receive each month after taxes.
50%
Needs
$0.00
Rent, bills, groceries, commuting.
30%
Wants
$0.00
Leisure, subscriptions, treats.
20%
Savings
$0.00
Savings, investing, paying debt.
Free for early users · No card required
How the rule works in 3 steps
Find your net income
Add up what lands in your account each month after taxes (salary, side income...).
Split it 50 / 30 / 20
Half for needs, 30% for wants, and 20% for savings and debt.
Adjust to your reality
If rent eats more than 50%, protect your savings and trim your wants.
What the 50/30/20 rule is and how to use it
The 50/30/20 rule is one of the simplest ways to organize a monthly budget. Popularized by senator Elizabeth Warren, the idea is easy to remember: split your net income (what you earn after taxes) into three buckets — 50% for needs, 30% for wants and 20% for savings.
On a $3,000 take-home income, for example, that's $1,500 for needs (rent, bills, groceries, commuting), $900 for wants (leisure, subscriptions, eating out) and $600 for savings or paying down debt. The calculator above does this split instantly with your number.
The difference between a need and a want
The hardest part is telling needs from wants. A need is something you can't stop paying without real consequences: your housing, power, basic food, transport to work. A want improves your life but is optional: the streaming service, the premium gym, the coffee on the way to the office. Many expenses we think are essential are really wants — and that's where the room to save more lives.
The rule is a guide, not a law. If you live in an expensive city it's normal for needs to top 50%; what matters is protecting the 20% for savings and adjusting your wants. To know whether you actually follow the rule you need to see your real spending by category each month — and there an app like Lurio saves you the work: it categorizes your expenses automatically and warns you before you overspend.
Frequently asked questions
What is the 50/30/20 rule?
It is a simple way to split your paycheck: 50% goes to needs (the essentials), 30% to wants (things that improve your life but are optional) and 20% to savings and paying off debt. It is based on your net income — the money you take home after taxes.
What counts as a "need"?
The things you can't stop paying: rent or mortgage, utilities (power, water, internet), basic groceries, commuting, insurance and minimum debt payments. Subscriptions, dining out and entertainment are wants, not needs.
What if my needs are more than 50%?
It's very common, especially with high rent. Treat it as a guide, not a strict rule: if your needs are 60%, trim your wants and protect your savings as much as you can. Seeing your real spending by category helps you find where to cut.
Is this calculator free?
Yes, it is 100% free and runs in your browser with no sign-up. If you want to apply the rule month after month with your real expenses, Lurio categorizes them automatically and alerts you before you overspend.
Built by the Lurio team
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