50-30-20 calculator

This 50-30-20 calculator splits your take-home monthly income into suggested spending in three areas: necessities, wants and savings.

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50/30/20 Rule Calculator

 

simplify your spending

The online 50-30-20 calculator can be a great tool for people who don't have the patience for tracking their spending in detailed catagories. It allows you to divide your monthly income into necessities, wants and savings. This reduces the amount of time you have to spend detailing your finances and allows you to focus more on the bigger picture instead. A classic rule of thumb is to split your monthly salary as follows:  

  • 50% goes into necessities/needs (essential expenses such as rent or mortgage, food and bills) 
  • 30% goes towards wants (spending that isn't strictly necessary such as activities, new clothes, subscriptions and petrol) 
  • 20% goes towards savings or debt repayments 

Of course, the amount you’ll be able to put into these pots will differ based on your circumstances. This rule is just to give you a clear way of thinking about your money. If your spending doesn’t fit the rule, that’s okay – but it gives you a good goal to aim for.