50/30/20 Budget Calculator
The 50/30/20 rule splits your take-home pay into 50% needs, 30% wants, and 20% savings. Enter your monthly take-home — or calculate it from your salary — to see your targets.
Housing, food, utilities, minimum debt payments
Dining out, entertainment, subscriptions
Emergency fund, investing, extra debt payoff
50/30/20 is a guideline, not a rule — adjust to your situation.
Updated June 17, 2026Source: IRS Revenue Procedure 2025-32 & SSA (2026)
Worked example
On $6,000 of monthly take-home, the rule suggests $3,000 for needs (housing, food, utilities), $1,800 for wants, and $1,200 toward savings and debt payoff.
FAQ
- Should I use gross or take-home pay?
- Take-home (after-tax) pay. Use the 'calculate from salary' option to get it from your gross.
- Is 50/30/20 a strict rule?
- No — it's a starting guideline. High-cost areas often push needs above 50%; adjust to your situation.
- Where do retirement contributions fit?
- Pre-tax 401(k) comes out before take-home; the 20% savings bucket is for additional saving and debt payoff.
Estimate only — not tax advice. This calculator gives an approximate take-home figure based on 2026 federal income tax, Social Security and Medicare (FICA), and, where shown, state income tax. It does not account for tax credits (such as the Child Tax Credit or EITC), the Alternative Minimum Tax, preferential capital-gains rates, or itemized deductions beyond the standard deduction. Your actual paycheck may differ. Consult a qualified tax professional for advice specific to your situation.