Budget Calculator

Build your monthly budget by entering income and expense categories. See your surplus or deficit instantly, and compare to the recommended 50/30/20 budgeting rule.

Monthly Budget Calculator
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The 50/30/20 Rule

The 50/30/20 budgeting rule, popularized by Senator Elizabeth Warren, divides after-tax income into three categories: 50% for needs (housing, food, utilities, insurance), 30% for wants (dining out, entertainment, hobbies), and 20% for savings and debt repayment. This simple framework helps ensure you're saving while still enjoying life.

Average American Monthly Budget

CategoryAvg Monthly Spending% of Income
Housing$1,78432%
Transportation$1,02518%
Food$77914%
Healthcare$4528%
Entertainment$3476%
Savings~$5009%

Frequently Asked Questions

How do I start a budget?+
Start by tracking all income sources and every expense for one month. Categorize spending into needs, wants, and savings. Then compare totals to your income and identify areas to cut back.
What if my expenses exceed income?+
Prioritize cutting discretionary expenses (wants) first. Review subscriptions, dining out, and entertainment. If needs exceed income, look for ways to increase income or reduce fixed costs like housing or transportation over the longer term.

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