50/30/20 Budget Calculator

50/30/20 Budget Calculator: The Simplest Budget That Works

The 50/30/20 rule is the easiest budgeting framework most people have ever heard of, and for good reason. Spend 50% on needs, 30% on wants, 20% on savings and debt repayment. That is the whole system. This calculator breaks down what those numbers actually mean in dollars based on your income.

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Enter your monthly take-home pay to get your personalized budget breakdown.

Monthly Take-Home Pay (after tax) ($)

50% — Needs

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Rent, groceries, utilities, transport, insurance

30% — Wants

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Dining out, subscriptions, entertainment, shopping

20% — Savings

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RRSP, TFSA, emergency fund, debt payoff

The 50/30/20 rule was popularized by Senator Elizabeth Warren in her book “All Your Worth.” It is intentionally simple. You do not need to track every coffee purchase — just make sure each bucket stays roughly in range. Review monthly, adjust quarterly. Most people who try it find they are overspending on wants by 10-15% and can redirect that straight into savings without feeling deprived.