What counts as a need vs a want?

Needs are expenses required for a basic standard of living — rent, utilities, groceries, minimum debt payments. Wants are discretionary — dining out, streaming services, travel.

What if my needs are more than 50% of my income?

This is common in high cost-of-living areas. Try reducing the wants percentage in the calculator to see how much that would need to shrink to keep your savings rate intact.

Personal Finance

50/30/20 Budget Calculator

Enter your monthly take-home income and adjust the wants and savings sliders to see how much goes to needs, wants, and savings each month, and how that compares to the classic 50/30/20 rule.

Interactive · set your situation

Split your monthly income

Monthly take-home income$5,000

Wants30%

Savings & debt payoff20%

That's the classic 50/30/20 split.

Needs — 50%$2,500

Wants — 30%$1,500

Savings & debt — 20%$1,000

Elizabeth Warren's original rule: 50% needs, 30% wants, 20% savings and debt payoff. Needs is whatever is left after wants and savings.

Frequently Asked Questions

A budgeting framework popularized by Senator Elizabeth Warren: 50% of after-tax income goes to needs, 30% to wants, and 20% to savings and debt payoff.

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