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50/30/20 Budget Calculator

Split your income using the most popular budgeting rule. Enter your take-home pay to see exactly how much goes to needs, wants, and savings.

$

Use your net pay — after income tax and deductions

50% Needs

Rent/mortgage, groceries, utilities, insurance, minimum debt payments, transport to work

$2,500

per month

30% Wants

Dining out, subscriptions, hobbies, travel, entertainment, gym membership

$1,500

per month

20% Savings & debt

Emergency fund, retirement contributions, extra debt payments, investments

$1,000

per month

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The 50/30/20 rule explained

The 50/30/20 rule is a simple budgeting framework popularised by Senator Elizabeth Warren in her book "All Your Worth." It divides your after-tax income into three categories: 50% for needs, 30% for wants, and 20% for savings and debt repayment.

The appeal is simplicity. Unlike zero-based budgeting where you track every expense, the 50/30/20 rule gives you guardrails without micromanagement. If you're spending less than 50% on needs and saving at least 20%, you're broadly on track.

Adjusting for your situation

In high cost-of-living cities, your "needs" may naturally consume more than 50%. That's okay — adjust by trimming wants first before touching savings. The 20% savings target is the most important number to protect, especially in your 20s and 30s when compound growth has the most time to work.