Budget Calculator
Create a personal budget and see where your money goes. Use the 50/30/20 rule or customize your spending categories.
Budget Summary
Monthly Surplus
$1,250
Available to save or spend
Savings Rate
15.0%
Good
Monthly Income
Enter your after-tax income
Needs (Essential Expenses)
Housing, utilities, food, transportation
Wants (Discretionary)
Entertainment, dining, shopping
Savings & Investments
Emergency fund and retirement
Budget Breakdown
Visual spending allocation
Category Analysis
Spending by category with recommendations
Budget Summary
Monthly Surplus
$1,250
Available to save or spend
Savings Rate
15.0%
Good
Quick Answer
A budget calculator helps you plan how to allocate income across expenses and savings. The popular 50/30/20 rule suggests: 50% for needs (rent, utilities, groceries), 30% for wants (entertainment, dining), 20% for savings and debt payoff. Enter your income and expenses at practicalwebtools.com to create a balanced budget.
Key Facts
- 50/30/20 rule: 50% needs, 30% wants, 20% savings/debt
- Average American spends 33% on housing
- Recommended: housing cost under 30% of gross income
- Track expenses for 1-3 months to understand spending patterns
- Emergency fund: 3-6 months of expenses
- Zero-based budgeting: allocate every dollar to a purpose
- 78% of Americans live paycheck to paycheck
What if your monthly income was
See how income changes affect your budget allocations and savings rate
Personalized Insights
3 insights based on your inputs
Good Savings Progress
Your 15.0% savings rate is solid. Increasing by 5.0% would reach the optimal 20% target.
Essential Expenses High
Your needs consume 53% of income, exceeding the 50% guideline. Look for ways to reduce housing, transportation, or insurance costs.
Monthly Surplus
You have $1,250 unallocated each month. That's $15,000 annually you could invest or save!
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Frequently Asked Questions
The 50/30/20 rule divides after-tax income into: 50% needs (housing, food, utilities, transportation), 30% wants (entertainment, dining out, hobbies), and 20% savings/debt repayment. It's a simple framework to balance living expenses with financial goals.
The general rule is to spend no more than 28-30% of gross income on housing (rent/mortgage, taxes, insurance). Some experts recommend 25% of take-home pay. In high-cost areas, you may need to adjust, but try to offset with lower spending elsewhere.
Financial experts recommend saving at least 20% of income (including retirement contributions). This breaks down as: 10-15% for retirement, 5-10% for other goals (emergency fund, down payment). Start with what you can and increase by 1% every few months.
Use budgeting apps (Mint, YNAB, Personal Capital), spreadsheets, or the envelope method. Track for 1-3 months to understand patterns. Categorize expenses as needs vs wants. Review weekly and adjust. Automate savings to "pay yourself first."
First, separate needs from wants and cut wants. Look for ways to reduce needs (refinance, negotiate bills, downsize). Increase income with side work. Prioritize high-interest debt. Build a $1,000 emergency fund first, then tackle debt systematically.
Budget Summary
Monthly Surplus
$1,250
Available to save or spend
Savings Rate
15.0%
Good