How to use it
- Type your monthly take-home pay in Monthly take-home pay.
- Keep the shares of 50, 30 and 20, or change them, so that Needs, Wants and Savings and extra debt add up to 100%.
- Read the amount for each group. If the Shares check is red, adjust the shares until they add up to 100%.
- Open Amount per group to see each share and amount with the totals, and read the working under How the amounts are worked out.
How the amounts are calculated
Each group gets its share of your take-home pay. The amount is the pay multiplied by the share, divided by 100, and rounded to cents. When the three shares add up to 100%, the three amounts together make up the whole of your pay.
amount = take-home pay × share ÷ 100
needs + wants + savings = take-home pay (when the shares add up to 100%)- Example: 3,200 × 50% = 1,600 for needs.
- You set the shares. The calculator does not decide what counts as a need.
The 50/30/20 rule and its limits
The 50/30/20 rule is a rule of thumb: half of take-home pay for needs, 30% for wants and 20% for savings and extra debt payments. It is a starting point, not an official standard. A different split may suit you if your rent, debts or income are far from the usual range.
What this calculator does not include
- Tax and deductions: the amount you enter should be what reaches your account.
- Irregular income, such as a bonus or a month without pay: these need a budget of their own.
- Interest, investment returns and fees: the calculator does not add them to the groups.
Worked example: 3,200 a month at 50/30/20
Take-home pay of 3,200 is split with the default shares. Needs get 50%, which is 1,600. Wants get 30%, which is 960. Savings and extra debt get 20%, which is 640. Together they make 3,200, and the shares check reads 100%.
| Group | Share | Amount |
|---|---|---|
| Needs | 50% | 1,600.00 |
| Wants | 30% | 960.00 |
| Savings and extra debt | 20% | 640.00 |
Frequently asked questions
What is the 50/30/20 rule?
It is a budgeting rule of thumb: half of take-home pay for needs, 30% for wants and 20% for savings and extra debt payments. It is a starting point you can change, not an official rule.
What counts as a need?
A cost you must pay to live and work: rent or a mortgage, utilities, basic food, transport to work, insurance and the minimum payments on your debts. Anything you could drop without a serious problem is a want.
Should I enter gross pay or take-home pay?
Enter take-home pay, the amount that reaches your account after tax, pension contributions and other deductions. The shares then apply to the money you can actually spend or save.
What if my needs cost more than 50% of my pay?
Set the needs share to your real figure and lower the wants share. The three shares must add up to 100% so that the amounts match your pay.
Is this financial advice?
No. The calculator adds up the groups for you and is a planning aid only. For a plan that fits your own situation, speak to a qualified financial adviser.
Does the calculator keep what I type?
No. The amounts are worked out in your browser. Nothing you enter is sent to us or stored.
Sources
Figures and text last checked on Thursday, November 12, 2026.