50/30/20 Budget Calculator
The 50/30/20 rule is a simple way to budget: 50% of your take-home pay covers needs, 30% covers wants and 20% goes to savings and paying down debt.
Enter your monthly take-home pay to see how much you should aim to spend in each category.
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: £2,500 a month
Important assumptions
- The 50/30/20 split is a guideline, not a rule. High-cost areas may need more than 50% on needs.
- Use take-home pay (after tax and pension), not gross salary.
- Debt repayments above the minimum count towards the 20% savings and debt category.
Frequently asked questions
What counts as a "need" vs a "want"?
Needs are essentials you cannot avoid: housing, utilities, food, transport to work and insurance. Wants are everything else that improves your lifestyle — eating out, subscriptions, holidays, hobbies.
What if my needs are more than 50%?
That is common in expensive areas. The target is still useful: it shows you the gap and lets you trim wants or find savings elsewhere until the split is sustainable.
Should debt repayments count as savings?
Repaying debt above the minimum is often a better return than saving, especially for high-interest debt. That is why the 20% category is "savings and debt".
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New to the topic? Browse the guides section for plain-English explainers on cost of living, including worked examples and tips.
Browse financial guidesThese calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.