Calculator
50/30/20 budget calculator
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The 50/30/20 rule is a simple rule of thumb: roughly half of your take-home pay for needs, 30% for wants and 20% for savings or paying down debt. Enter your monthly take-home pay to see that split, then add what you actually spend if you’d like a comparison.
Illustrative only, not financial advice. Results depend entirely on the figures you enter. The figures filled in below are example figures, not live rates or recommendations.
Work out your split
- Needs (50%)
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- Wants (30%)
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- Savings and debt (20%)
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How the 50/30/20 split works
The calculator simply multiplies your take-home pay by 50%, 30% and 20%. “Needs” are the costs you’d struggle to avoid, such as housing, energy, food and getting to work.
“Wants” are the things you choose. The last 20% goes towards savings or paying off debt faster than the minimum.
It’s a starting point, not a rule you have to meet. Housing costs alone can take more than half of take-home pay in some areas, so many people adjust the percentages to fit their situation.
Things to check
- Use take-home pay (after tax, National Insurance and pension contributions), not your salary before deductions.
- Irregular costs — car repairs, birthdays, annual subscriptions — are easy to forget. Spreading them into a monthly figure can make the split more realistic.
- If you have expensive debt, it may be worth looking at free, impartial help such as MoneyHelper.
- For a fuller picture of your spending categories, try our budget planner.
FAQ
What is the 50/30/20 rule?
A rule of thumb that splits take-home pay into roughly 50% for needs, 30% for wants and 20% for savings or extra debt payments.
Should I use my salary or take-home pay?
Take-home pay — the amount that actually lands in your account after tax and other deductions.
What if my needs are more than 50%?
That’s common, especially with high housing costs. The split is a guide, not a target you must hit. Many people adjust the percentages to suit them.
Does this calculator store my figures?
No. Everything is worked out in your browser and nothing is stored or sent anywhere.
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