Budget Calculator (50-30-20)
The 50-30-20 rule is a simple way to split your income: 50% for things you need, 30% for things you want, 20% for savings. Enter your income and adjust the sliders to see what that looks like in actual rupees for your situation.
How to use
- Enter your take-home income, monthly or annually - whichever is easier.
- Slide the needs and wants percentages to match your lifestyle. Savings fills whatever's left.
- You'll see the exact amount for each category so you can actually plan around it.
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The 50-30-20 rule is a simple starting framework for personal budgeting: 50% of take-home pay goes to needs (rent, groceries, bills), 30% to wants (dining out, subscriptions, hobbies), and 20% to savings and debt repayment. It's a rough guideline, not a rigid law - someone living in a high-cost city might spend 65% on needs and have less room for wants and savings.
The calculator lets you adjust those percentages to fit your actual situation. If you're aggressively paying down debt, you might bump savings to 35% and cut wants to 15%. The point is to see where your money is going and make a conscious call rather than wondering where it all went at the end of the month.
Frequently Asked Questions
Should I use gross income or take-home pay?
Take-home pay (after taxes and deductions) is more practical since that's the money you actually have to work with. Using gross income leads to over-allocating - you can't spend money that goes straight to taxes.
What counts as a need vs a want?
Needs are things you genuinely can't avoid: rent, utilities, groceries, minimum debt payments, health insurance, transportation to work. Wants are the extras: streaming subscriptions, eating out, gym memberships, new clothes you don't strictly need.
The 50% needs category feels too tight for where I live. What do I do?
That's common in expensive cities. If rent alone takes 40-45%, you need to either trim other categories, increase income, or accept a different split. Some people use 60-20-20 and gradually shift toward 50-30-20 as income grows.
Does savings include retirement contributions?
Yes. EPF, PPF contributions, SIPs, NPS - all of these count toward the savings bucket. If your employer deducts EPF before your take-home, you might already be saving more than you think.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.