Budget Calculator
Plan your monthly budget with the 50/30/20 rule — track income, expenses & savings
Monthly Take-Home Income
Enter your net salary after all deductions
Formula: 50% Needs · 30% Wants · 20% Savings
Budget Allocation
Needs Breakdown
Wants Breakdown
Savings Breakdown
Monthly Savings Goal Tracker
Set a monthly savings goal above to track progress.
Income Sources
Add all your monthly income streams
Monthly Expenses
Enter both budgeted and actual amounts for each category
Budget Summary
50/30/20 Alignment
Enter your income and expenses above to see alignment.
Monthly Savings Goal
Set a monthly savings goal above to track progress.
Budget Examples for Different Income Levels
New graduate, shared accommodation, Bengaluru
| Needs (50%) | ₹20,000 |
| Rent (shared) | ₹8,000 |
| Groceries + food | ₹5,000 |
| Transport | ₹4,000 |
| Bills + insurance | ₹3,000 |
| Wants (30%) | ₹12,000 |
| Savings (20%) | ₹8,000 |
| SIP | ₹4,000 |
| Emergency fund | ₹4,000 |
Mid-career, solo apartment, Mumbai suburbs
| Needs (50%) | ₹40,000 |
| Rent | ₹20,000 |
| Groceries | ₹8,000 |
| Transport + fuel | ₹6,000 |
| Insurance + bills | ₹6,000 |
| Wants (30%) | ₹24,000 |
| Savings (20%) | ₹16,000 |
| SIP + PPF | ₹10,000 |
| Emergency + FD | ₹6,000 |
Dual income household, owned flat, Delhi NCR
| Needs (50%) | ₹75,000 |
| Home loan EMI | ₹35,000 |
| Groceries + school | ₹20,000 |
| Transport + car EMI | ₹12,000 |
| Insurance + bills | ₹8,000 |
| Wants (30%) | ₹45,000 |
| Savings (20%) | ₹30,000 |
| SIP + NPS | ₹20,000 |
| PPF + FD | ₹10,000 |
How to Use the Budget Calculator
This calculator offers two modes. The Simple mode applies the 50/30/20 rule instantly — enter your monthly take-home salary and the tool divides it into Needs, Wants, and Savings, along with a granular breakdown of each bucket. The Advanced Tracker lets you enter your actual budgeted and spent amounts for 18 expense categories across Fixed, Variable, and Savings buckets, then computes your budget health score, savings rate, over-budget items, and 50/30/20 alignment.
What is the 50/30/20 Rule?
The 50/30/20 budgeting rule divides your after-tax monthly income into three buckets: 50% for Needs, 30% for Wants, and 20% for Savings and investments. It was popularised by US Senator Elizabeth Warren in her personal finance book All Your Worth and has since become one of the most widely recommended budgeting frameworks globally, including by major Indian financial institutions.
Needs (50%)
Needs are non-negotiable expenses you cannot avoid: rent or home loan EMI, groceries, electricity, water, gas, health and life insurance premiums, public transport or fuel for commuting, and minimum debt repayments. In India, housing alone often accounts for 25-35% of take-home salary in metro cities, which can compress the remaining needs budget significantly.
Wants (30%)
Wants are expenses that improve quality of life but are not essential for survival: dining out, OTT subscriptions, new clothing, gadgets, travel, gym memberships, hobbies, and entertainment. The key distinction is that wants can be reduced or eliminated without immediate hardship, whereas needs cannot.
Savings and Investments (20%)
This bucket covers building your financial future: emergency fund contributions, SIP in equity and debt mutual funds, PPF or NPS deposits, recurring deposits, FDs, and loan repayment beyond the minimum. Most certified financial planners in India recommend prioritising this order: emergency fund first, then high-interest debt, then long-term investments.
Budget Health Score Explained
The advanced tracker computes a budget health score based on your savings rate (savings as a percentage of total income):
| Score | Savings Rate | Meaning |
|---|---|---|
| Excellent | 20% or above | You are saving as per the 50/30/20 ideal — on track for long-term goals |
| Good | 15% – 19% | Slightly below ideal but making meaningful progress |
| Fair | 10% – 14% | Savings exist but not enough for ambitious goals — review wants spending |
| Poor | 5% – 9% | Barely saving — one unexpected expense away from financial stress |
| Critical | Below 5% | Living nearly paycheck to paycheck — immediate budget review needed |