Budget Calculator
Plan your finances using the 50/30/20 rule.
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Salary after taxes and deductions.
Needs (Target: 50%)
Wants (Target: 30%)
Savings (Target: 20%)
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Enter your income & expenses.
Surplus/Deficit:
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Your 50/30/20 Breakdown
Needs (Target: 50%)
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Wants (Target: 30%)
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Savings (Target: 20%)
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What is the 50/30/20 Budget Rule?
The 50/30/20 rule is a simple, time-tested framework for managing your money. It divides your after-tax income into three clear buckets:
1. Needs (50%)
These are expenses you must pay to survive and work. If you lost your job today, these are the bills you would still need to cover.
- Housing (Rent or EMI)
- Groceries (not dining out)
- Utilities (Electricity, Water, Internet)
- Transportation
- Insurance Premiums
2. Wants (30%)
These are lifestyle choices that make life enjoyable but aren't essential for survival.
- Dining out & ordering food
- Entertainment & Movies
- Shopping & Gadgets
- Vacations & Hobbies
- Subscriptions (Netflix, Gym)
3. Savings (20%)
This is "paying yourself first." This money goes towards your future financial security.
- Investments (SIPs, Stocks)
- Emergency Fund
- Retirement (PPF, NPS)
- Extra Debt Repayment
How to Fix a Broken Budget
- Needs > 50%? This is common in big cities. Try to cut down on "Wants" to balance it out. If your Needs are 60%, reduce Wants to 20% to protect your Savings.
- Wants > 30%? This is usually where money leaks. Check your food delivery and online shopping habits.
- Savings < 20%? Try to automate your savings. As soon as your salary hits, transfer 20% to a separate account.