50/30/20 Budget Calculator

What is the 50/30/20 rule?

The 50/30/20 rule is a simple budgeting framework popularized by Senator Elizabeth Warren in her book All Your Worth. The idea is straightforward: divide your after-tax income into three categories: 50% for needs, 30% for wants, and 20% for savings and debt repayment.

Needs (50%) are expenses you can't avoid: rent or mortgage, groceries, utilities, insurance, minimum loan payments, and transportation to work. These are the bills that must be paid regardless of your lifestyle choices.

Wants (30%) are everything else you spend money on by choice: dining out, streaming services, hobbies, vacations, and upgrades beyond the basics. This is the fun stuff, and having a clear budget for it means you can enjoy spending without guilt.

Savings (20%) covers your financial future: emergency fund contributions, retirement savings, extra debt payments, and investments. This is the category that builds long-term wealth and financial security.

The 50/30/20 rule is a great starting point, but it's not one-size-fits-all. If you live in an expensive city, your needs might exceed 50%. If you're aggressively paying down debt, you might bump savings to 30% or more. Use the sliders above to find the split that works for your situation.