Finance & Investment · Planning
Budget Planner (50/30/20 Rule)
Plan a monthly budget with the 50/30/20 rule (or a split that suits you): see how much should go to needs, wants and savings, list what you actually spend, and find where you're over or under — and how much is left unallocated.
Your inputs
Quick start — try a typical case
₹ 1 lakh
After tax, PF and other deductions — what reaches your bank account.
Leave empty to just see the targets. Mark loan prepayments as saving.
Your result Live
Left Unallocated Each Month
₹8,500
You save 18% of your income; the 50/30/20 rule aims for 20%
- Needs Target (50%)
- ₹50,000 — you spend ₹52,500, ₹2,500 over
- Wants Target (30%)
- ₹30,000 — you spend ₹21,000, ₹9,000 under
- Savings Target (20%)
- ₹20,000 — you save ₹18,000, ₹2,000 short
- Savings Rate (incl. anything left over)
- 26.5%
- Yearly Savings at Target
- ₹2,40,000
- Needs · 53%₹52,500
- Wants · 21%₹21,000
- Savings · 18%₹18,000
- Unallocated · 9%₹8,500
Put the ₹8,500 left over to work — for example into your savings or an emergency fund — or it tends to get spent.
How this is calculated
Needs = 50 % × income · Wants = 30 % × income · Savings = 20 % × income
- Income
- Monthly take-home (after tax and deductions)
- Needs
- Essentials: housing, food, utilities, transport, insurance, minimum loan payments
- Wants
- Lifestyle: eating out, entertainment, shopping, holidays
The 50/30/20 rule, popularised by Elizabeth Warren and Amelia Warren Tyagi, is a simple starting point: half your take-home pay on needs, 30 % on wants and 20 % on saving or paying off debt. In expensive cities needs often take more than half — pick the 60/20/20 or 70/20/10 split, and raise savings as income grows.
Assumptions & sources
- Income is take-home pay; anything already deducted at source (PF, tax) is not counted again.
- Expense categories are your choice — the same item can be a need for one household and a want for another.
- 1All Your Worth: The Ultimate Lifetime Money Plan (Warren & Tyagi) — the 50/30/20 balanced money formula — Free Press, 2005
Calculator ID FIN-PLAN-BUDGET-001 · version 1.0.0
Common questions
What counts as a need?
Things you must pay to live and work: rent or home EMI, groceries, utilities, basic transport, insurance, school fees and minimum loan payments. Upgrades beyond the basics are wants.
Where do EMIs go?
The required EMI is a need. Any extra prepayment you choose to make counts as saving, since it builds your net worth.
My needs are more than 50 %. What now?
That's common in big cities. Use the 60/20/20 or 70/20/10 split for now and protect the savings share first — pay yourself first through automatic SIPs.