Budget Calculator — 50/30/20 Rule
Needs 50% · Wants 30% · Savings 20%
$
Monthly Take-Home Pay (After Tax)
$3,375
$25/hr · ~$40,500/yr after tax
Housing (Rent/Mortgage)
Max 30% of take-home
$1,013
Transportation
~15% of needs budget
$253
Groceries & Food
~15% of needs budget
$253
Healthcare & Insurance
~10% of needs budget
$169
Utilities & Bills
~10% of needs budget
$169
Dining Out & Entertainment
30% of take-home = wants
$506
Shopping & Personal
Part of 30% wants
$506
Savings & Investments
20% of take-home
$675
Emergency Fund / Debt
Part of 20% savings
$338
Based on 50/30/20 rule. After-tax is an estimate. Get exact after-tax →
📖 The 50/30/20 Budget Rule Explained
The 50/30/20 rule is a simple budgeting framework popularized by Senator Elizabeth Warren in her book "All Your Worth." It divides your after-tax income into three categories:
- 50% — Needs: Housing, food, utilities, transportation, healthcare, minimum debt payments. These are non-negotiables.
- 30% — Wants: Dining out, entertainment, shopping, subscriptions, vacations. Things you enjoy but could live without.
- 20% — Savings: Emergency fund, retirement (401k/IRA), investments, extra debt payments. Your financial future.
The key is to use your after-tax income (take-home pay), not your gross income. At $25/hr, that's approximately $3,375/month in a no-tax state — so needs = $1,688, wants = $1,013, savings = $675.
Tip: If you live in a high-cost city, your needs may exceed 50%. That's okay — adjust by reducing wants or finding ways to increase income. The 50/30/20 rule is a guideline, not a strict law.