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50/30/20 Household Budget Calculator

How much should you spend on essentials and leisure, and how much should you save each month? Enter your monthly net income and the calculator applies the 50/30/20 rule: 50% for needs, 30% for lifestyle and 20% for savings and debt. You can also fill in what you spend today to see how it compares.

Compare with your current budget (optional)

Enter what you spend today in each category to see how it compares with the rule. You can leave these at zero.

Your 50/30/20 split

Needs (50%)
€1,000/mo
Wants (30%)
€600/mo
Savings & debt (20%)
€400/mo

Needs: housing, food, transport, bills and minimum loan payments. Wants: leisure, dining out, subscriptions and holidays. Savings & debt: saving, investing and paying off debt beyond the minimum.

Educational estimate, not financial advice. The 50/30/20 rule is a guideline, not an obligation.

What this calculator does

It takes your monthly net income (what you receive after tax and Social Security) and splits it into three parts using the 50/30/20 rule: half for needs, 30% for lifestyle and 20% for savings and debt repayment. If you fill in what you spend in each category, it also shows your current split alongside the recommended one.

What goes in each category

Needs (50%) are essentials: rent or mortgage, food, transport, utility and phone bills, insurance and minimum loan payments. Wants (30%) are everything optional: dining out, leisure, subscriptions and holidays. Savings & debt (20%) is saving, investing and paying off loans beyond the minimum.

It applies to net income

The rule uses income after tax, not gross salary. If you do not know your net pay, work it out first with the net salary calculator. The 50/30/20 split is a guideline, not an obligation: in expensive cities, housing alone can exceed 50%, and the goal is then to move towards the rule over time.

Worked example

On a net income of €2,000 a month, the 50/30/20 rule gives €1,000 for needs, €600 for lifestyle and €400 for savings and debt. If you currently spend €1,200 on needs, €500 on lifestyle and save €300, the calculator shows you are €200 over the recommendation on needs and could raise savings up to €400.

Frequently asked questions

What is the 50/30/20 rule?
It is a simple way to organise a budget: 50% of net income for needs, 30% for lifestyle (optional spending) and 20% for savings and debt repayment. It was popularised by US senator Elizabeth Warren.
Does it apply to gross or net salary?
To net income, that is, what you receive after income tax and Social Security are deducted. The 50%, 30% and 20% are calculated on that amount.
What if my rent already exceeds 50%?
That is common in cities. The rule is a reference, not a law. If needs go above 50%, the path is to cut lifestyle spending temporarily, raise income or find cheaper housing, and move towards the rule over time.
Is saving 20% enough?
Twenty percent is a solid starting point and, over a career, lets you build an emergency fund and retirement savings. For more ambitious goals, such as financial independence, you can save more and trim lifestyle spending.

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-11