Free Budget Calculator
Track your monthly income and expenses with our free budget calculator. Use the 50/30/20 rule, visualize spending with charts, and take control of your finances.
📚 Learn More About Budgeting
💰 The 50/30/20 Rule
A simple budgeting framework: allocate 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment.
Example: With $4,000 monthly income, budget $2,000 for needs (rent, food), $1,200 for wants (entertainment), and $800 for savings.
🏠 Needs vs Wants
Housing, utilities, groceries, transportation, insurance, minimum debt payments.
Dining out, entertainment, hobbies, subscriptions, shopping, vacations.
Emergency fund, retirement, investments, extra debt payments.
🚨 Emergency Fund
Start by saving $1,000 for immediate emergencies, then build to 3-6 months of expenses for job loss or major unexpected costs.
Pro tip: Keep your emergency fund in a high-yield savings account for easy access and growth.
📊 Zero-Based Budgeting
Assign every dollar a job. Your income minus expenses should equal zero, meaning all money has a purpose (including savings).
This method ensures you're intentional with every dollar and prevents overspending.
⚠️ Common Mistakes
- Not tracking small purchases (they add up!)
- Forgetting irregular expenses (insurance, gifts)
- Being too restrictive (allow some fun money)
- Not reviewing and adjusting monthly
- Ignoring debt in your budget
✅ Best Practices
- Review your budget weekly
- Use cash for discretionary spending
- Automate savings and bill payments
- Track every expense for 30 days
- Adjust categories based on reality
- Celebrate small wins and progress
How to Use This Budget Calculator
Enter Your Income
Add all income sources: salary, freelance, side hustles, investments, and any other money coming in.
Add Your Expenses
Categorize spending into needs (housing, food), wants (entertainment), and savings (emergency fund, retirement).
Review & Adjust
Check if you're following the 50/30/20 rule, review charts, and adjust spending to meet your financial goals.
Frequently Asked Questions
What is the 50/30/20 budget rule?
The 50/30/20 rule is a simple budgeting framework where you allocate 50% of your after-tax income to needs (housing, food, utilities), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment. It's a flexible guideline that helps ensure you're covering essentials while still enjoying life and building wealth.
How much should I save each month?
Aim to save at least 20% of your after-tax income. Start with building a $1,000 emergency fund, then work toward 3-6 months of expenses. After that, focus on retirement savings (15% of income) and other financial goals. If 20% seems impossible, start with any amount and gradually increase it.
What counts as a "need" vs a "want"?
Needs are essential for survival and work: housing, utilities, groceries, transportation, insurance, and minimum debt payments. Wants are things you choose to spend on: dining out, entertainment, hobbies, cable TV, gym memberships, and vacations. The line can be blurry—basic groceries are needs, but expensive organic brands might be wants.
How often should I review my budget?
Review your budget weekly to track spending and monthly to adjust categories. Weekly check-ins help you stay on track and catch overspending early. Monthly reviews let you see patterns, adjust for irregular expenses, and celebrate progress toward your financial goals.