Budget Calculator — Free Monthly Budget Planner
Use this free budget calculator to plan your monthly finances. Enter your income and expenses across needs, wants and savings to see your monthly surplus or deficit, how your budget compares to the 50/30/20 rule and personalised tips to improve your financial health.
Budget Calculator
💰 Monthly Income
🏠 Needs (essential expenses)
🎉 Wants (lifestyle expenses)
🏦 Savings & Investments
Love books? Audible is cheaper than buying — try it free for 30 days with over 500,000 titles.
Try Another Calculator
How to Use the Budget Calculator
Enter your monthly take-home income then fill in your expenses across three categories — Needs (essential expenses like housing and food), Wants (lifestyle spending like dining out and entertainment) and Savings. Click Calculate to see your full budget breakdown and 50/30/20 comparison.
What Is the 50/30/20 Rule?
The 50/30/20 rule is a simple budgeting framework that divides your after-tax income into three categories:
50% on Needs — essential expenses you can’t avoid. Rent, utilities, groceries, transport, insurance and minimum debt repayments.
30% on Wants — lifestyle choices that improve your life but aren’t essential. Dining out, entertainment, subscriptions, holidays and shopping.
20% on Savings — building your financial future. Emergency fund, retirement contributions, investments and extra debt repayments.
This framework was popularised by US Senator Elizabeth Warren in her book All Your Worth. It’s a guideline not a strict rule — adjust the percentages based on your cost of living and financial goals.
How to Reduce Your Monthly Expenses
Start by identifying your biggest expense categories. Housing is typically the largest — if it exceeds 30% of income consider whether downsizing or finding a flatmate is possible. For variable expenses like dining out and subscriptions a small reduction makes a big difference over 12 months.
How Much Should I Save Each Month?
The 50/30/20 rule suggests 20% of take-home pay. On a $4,000 monthly income that’s $800 per month. If 20% isn’t achievable start with whatever you can — even 5% is better than nothing and builds the habit. Increase by 1% every few months until you reach your target.
Important Information
This budget calculator provides estimates for informational purposes only and should not be considered financial advice. Results are based on the information you enter and may not reflect your actual financial situation.
Expenses, income, and financial circumstances vary from person to person. Always review your finances carefully and consider speaking to a qualified financial advisor before making financial decisions.
FAQs
What is the 50/30/20 budget rule?
The 50/30/20 rule suggests spending 50% of after-tax income on needs, 30% on wants and saving 20%. It’s a simple framework for balanced budgeting that works for most income levels.
What counts as a need vs a want?
Needs are expenses you cannot avoid — rent, utilities, groceries, transport to work and minimum debt repayments. Wants are choices — dining out, streaming services, gym memberships and holidays. Some expenses like a car can be either depending on whether it’s essential for your job.
How do I reduce my monthly expenses?
Start with your biggest categories. Review all subscriptions and cancel unused ones. Meal prep to reduce dining out costs. Shop around for better insurance and utility rates annually. Small reductions across multiple categories add up significantly over time.
What should I do with my monthly surplus?
Prioritise in this order — build an emergency fund of 3-6 months expenses, pay off high interest debt, then invest for long term growth. Use our Savings Calculator or Investment Calculator to see how your surplus can grow.
Is this calculator free?
Yes completely free with no sign-up needed.