How the calculator works
- Your pay: your take-home pay, a month, a fortnight or a week.
- Your costs: rent or mortgage, bills, groceries, transport, insurance and health, debt payments, fun and savings. The boxes start with example amounts: change them to yours.
- What’s left: the big result is what you have left each month. Below, you can see how you compare with the 50/30/20 guide, and what to do next.
Not sure what you take home? Use our paycheck calculator.
The 50/30/20 rule
Split your take-home pay three ways: 50% on needs, 30% on wants and 20% on savings and paying off debt. Here’s what that means a month:
| Take-home a month | Needs (50%) | Wants (30%) | Savings and debt (20%) |
|---|---|---|---|
| $3,000 | $1,500 | $900 | $600 |
| $4,000 | $2,000 | $1,200 | $800 |
| $4,500 | $2,250 | $1,350 | $900 |
| $5,000 | $2,500 | $1,500 | $1,000 |
| $6,000 | $3,000 | $1,800 | $1,200 |
| $8,000 | $4,000 | $2,400 | $1,600 |
Needs, wants and savings
- Needs: what you must pay: housing, bills, groceries, transport, insurance and minimum debt payments.
- Wants: the extras, like eating out, shopping, subscriptions and holidays.
- Savings and debt: your emergency fund, retirement saving and anything you pay off debt beyond the minimum.
If your needs are more than 50%
That’s common, especially where housing is expensive. Try a 60/20/20 split, look at your biggest costs first, such as housing, your car and insurance, and keep saving something, even if it’s less than 20%.
Where to put your savings
- A starter emergency fund, so a surprise bill doesn’t go on a card. Aim for 3 to 6 months of essential spending over time: see how much to keep in an emergency fund.
- High-interest debt, such as credit cards, which usually costs more than savings earn. The debt payoff calculator shows the quickest way to clear it.
- Your goals and retirement: get your full employer 401(k) match, then save for what matters to you. The savings goal calculator shows how much to put away each month.
Make it stick
Set up automatic transfers to savings on payday, so you save first and spend what’s left. Check your budget every few months, and whenever your pay or rent changes. For a step-by-step plan, see how to make a budget, or take the free money check-up. If anyone depends on your income, check you have enough cover with the life insurance calculator.