Budget Calculator
Monthly Take-home Income
Needs (% of income)
Wants (% of income)
Needs (50%)
₹25,000
Wants (30%)
₹15,000
Savings (20%)
₹10,000
Savings in a Year
₹1,20,000
Needs
Wants
Savings
Use this free budget calculator to split your monthly income into needs, wants and savings with the 50/30/20 rule. Enter your take-home income and the calculator shows how much you can spend on essentials, how much on lifestyle and how much to save every month and every year. You can change the split to match your own situation.
What is the 50/30/20 budget rule?
The 50/30/20 rule is one of the simplest ways to budget. It divides your take-home income into three parts: about 50% for needs, 30% for wants and 20% for savings and investments. Instead of tracking every rupee, you only keep an eye on three numbers, which makes the budget easier to stick to.
Needs, wants and savings explained
Needs (50%): expenses you must pay to live and work: rent or home loan EMI, groceries, electricity and water, transport, insurance premiums, school fees and minimum loan payments.
Wants (30%): things that make life enjoyable but that you could cut back on: eating out, shopping, streaming subscriptions, gadgets, hobbies and holidays.
Savings (20%): money set aside for the future: an emergency fund, retirement, a home, your children's education and investments that help it grow.
Budget calculation example
Say your take-home pay is ₹50,000 a month. The 50/30/20 rule gives ₹25,000 for needs, ₹15,000 for wants and ₹10,000 for savings, which adds up to ₹1,20,000 saved in a year. On ₹80,000 a month the split is ₹40,000, ₹24,000 and ₹16,000.
How to use this budget calculator
1. Monthly take-home income: what reaches your bank account after tax and deductions.
2. Needs and wants: start with 50% and 30%, then adjust them to your real spending. Whatever is left becomes your savings.
3. Check the savings: the result shows your monthly and yearly savings, so you can see what a different split would mean over a year.
Tips to make your budget work
Pay yourself first: move your savings out on payday, before you spend, instead of saving what is left at the end of the month.
Build an emergency fund: aim for a few months of needs in an easily accessible account before taking bigger risks.
Adjust, don't give up: if needs take more than half your income, start with a smaller savings share and raise it as your income grows.
Invest regularly: money that sits idle loses value to inflation. Our SIP calculator shows what your monthly savings could grow to.
Budget calculator FAQs
What is the 50/30/20 rule?
It is a simple budgeting guideline: spend about 50% of your take-home income on needs, 30% on wants and put 20% into savings and investments. It is a starting point, not a strict law.
Should I use my gross salary or take-home pay?
Use your take-home pay: the amount that reaches your bank account after tax, provident fund and other deductions. That is the money you actually budget with.
What counts as a need and what is a want?
Needs are expenses you must pay to live and work, such as rent, groceries, utilities, transport, insurance and loan EMIs. Wants are things you could cut back on, such as eating out, shopping, subscriptions and holidays.
What if my needs are more than 50%?
That is common in big cities or with a home loan. Adjust the split in the calculator, look for ways to bring fixed costs down over time, and try to protect your savings share first.
Where should I put the savings part?
Usually an emergency fund comes first, then goals such as retirement or a home. Investing regularly, for example through a SIP or a stock basket, can help the savings grow.
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