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

Total Income$6,000
Total Expenses$4,750
Needs (50%)$3,200 (53%)
Wants (30%)$650 (11%)
Savings (20%)$900 (15%)

Monthly Income

$
2,00015,000

Needs (Essential Expenses)

$
$
$
$
$
$
$
Total Needs:$3,200 (53%)

Wants (Discretionary)

$
$
$
$
$
Total Wants:$650 (11%)

Savings & Investments

$
$
Total Savings:$900 (15%)

Budget Breakdown

Category Analysis

Housing25%
$1,500
Utilities3%
$200
Groceries7%
$400
Transportation7%
$400
Insurance5%
$300
Healthcare2%
$100
Debt Payments5%
$300
Entertainment3%
$150
Dining Out3%
$200
Shopping3%
$150
Subscriptions1%
$50
Savings8%
$500
Investments7%
$400
Other2%
$100

Budget Summary

Monthly Surplus

$1,250

Available to save or spend

Savings Rate

15.0%

Good

Total Income$6,000
Total Expenses$4,750
Needs (50%)$3,200 (53%)
Wants (30%)$650 (11%)
Savings (20%)$900 (15%)

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

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.