50/30/20 Budget Calculator

Split your monthly income into needs (50%), wants (30%), and savings (20%) using the popular 50/30/20 budgeting rule.

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Enter your monthly income to split it into 50% needs, 30% wants, and 20% savings.
₹

Your result

₹50,000

Needs (50%)

Wants (30%)₹30,000
Savings/debt repayment (20%)₹20,000

AI explanation

Formula

Needs = income × 50%. Wants = income × 30%. Savings = income × 20%

Worked example

₹1L monthly income (after tax)

Worked example: ₹1L monthly income (after tax)
FieldValue
Monthly income (after tax)100000
Needs (50%)50000
Wants (30%)30000
Savings/debt repayment (20%)20000

Assumptions

  • Needs covers essentials (rent, groceries, utilities, EMIs); wants covers discretionary spending (dining out, entertainment, subscriptions); savings covers savings, investments, and extra debt repayment.
  • This is a general guideline, not a rigid rule — adjust the split to fit your actual cost of living and financial goals.
  • Informational only.

Frequently asked questions

What is the 50/30/20 rule?

A popular budgeting framework that allocates 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment — popularized by U.S. Senator Elizabeth Warren's book "All Your Worth."

Does the 50/30/20 rule work in India?

It's a useful starting framework, though high cost-of-living cities in India may require adjusting the "needs" percentage higher, especially for rent — treat it as a guideline to adapt, not a strict rule.

What counts as a "need" vs. a "want"?

Needs are essential for basic living (rent, groceries, utilities, minimum debt payments). Wants are discretionary (dining out, entertainment, upgrades) — the line can be subjective, so use your judgment for borderline categories.

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How the 50/30/20 Budgeting Rule Works

The 50/30/20 rule splits after-tax income into three fixed shares — 50% for needs, 30% for wants, and 20% for savings or debt repayment — turning a single income figure into three spending targets.

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Three Different Ways to Decide How Much to Save

"How much should I save?" has at least three different answers depending on which question you're actually asking — what am I saving right now, what does a general rule of thumb suggest, or what does a specific future goal actually require.

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Sources

This calculator provides a general guideline only and does not constitute personalized financial advice.

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