How to use this calculator
Enter your actual monthly take-home income, then tune the needs, wants and savings percentages. The tool shows a suggested allocation, not an instruction to spend exactly that amount.
What is the 50/30/20 framework?
The basic guideline assigns half of after-tax income to essential needs, thirty percent to discretionary spending and twenty percent to savings or additional debt payments. It is not suitable for every cost of living.
Adjust to your circumstances
If essentials exceed half your income, change the percentages or focus on practical cost changes rather than hiding the mismatch.
Avoid double counting
Classify a purchase when it occurs. If that purchase went on a credit card, avoid counting the repayment as a second expense for the same item.
Transparency note
This tool is a simplified educational model. It does not fetch live financial-product rates, consider your personal circumstances or guarantee outcomes. Check official statements and terms before acting.
Frequently asked questions
Do I use gross or net income?
Use take-home income after payroll deductions.
Can I change the percentages?
Yes. They must add up to 100% for the displayed allocation to be valid.