About the 50/30/20 Calculator
The 50/30/20 rule, popularized by Elizabeth Warren, splits after-tax income into three buckets: 50% for needs, 30% for wants, and 20% for savings and extra debt payments. This calculator turns your income into concrete dollar targets for each bucket, with the percentages fully adjustable if the standard split doesn't fit your situation. If you enter what you're actually spending in each category, it compares that against the targets and shows exactly where you're over or under budget — turning a vague sense of "I probably spend too much on X" into a specific number. Everything is calculated locally in your browser.
What Goes Where
Needs (50%)Rent or mortgage, utilities, groceries, minimum debt payments, insurance premiums, and transportation to work — the things you'd struggle to live without or that you're contractually obligated to pay.
Wants (30%)Dining out, streaming subscriptions, hobbies, vacations, non-essential shopping, and upgrades you chose rather than needed — the "nice to have" category.
Savings (20%)Emergency fund contributions, retirement accounts, extra payments beyond debt minimums, and investing toward bigger goals — building your future, not just covering today.
Gray areasA gym membership might be a Need if it's central to managing a health condition, or a Want if it's more of a lifestyle choice — the categories aren't always perfectly clean, and that's okay. Be honest with yourself rather than rules-lawyering everything into "Needs."
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