Why use this calculator
A budget planner is the foundation of financial health. This calculator shows exactly where your money goes, compares your spending to the popular 50/30/20 rule, and shows your savings rate — so you can identify where to cut and accelerate your financial goals.
How to use it
Enter your monthly take-home income and your estimated spending across each category. Don't guess — check your bank statements for accurate figures. The calculator shows your surplus, savings rate, and how you compare to the 50/30/20 guideline (50% needs, 30% wants, 20% savings).
The formula
Surplus = Income − (Needs + Wants + Savings). Savings Rate = (Savings + Surplus) ÷ Income × 100. 50/30/20 Rule: 50% needs, 30% wants, 20% savings.
Worked examples
$5,000/month income, $1,600 rent, standard expenses, $500 savings
~$250 surplus, 15% savings rate — needs push to 20% savings
$7,500/month income, $2,200 mortgage, $1,500 savings
20% savings rate, 49% on needs — well aligned to 50/30/20
When people use it
- Building a monthly budget from scratch
- Identifying spending leaks
- Working out how much you can save
- Preparing for a major financial goal
Tips
- Use actual bank statement averages, not estimates — most people underestimate spending by 20-30%
- The 50/30/20 rule is a guideline, not a rule — in high-cost cities, needs often exceed 50%
- Automate savings transfers on pay day so you save first and spend what remains
- Review and update your budget quarterly as income and expenses change
- Even a 1% increase in savings rate compounded over 10 years makes a significant difference
Questions people ask
- What is the 50/30/20 rule?
- The 50/30/20 rule suggests allocating 50% of take-home income to needs (housing, food, transport), 30% to wants (entertainment, dining, hobbies), and 20% to savings and debt repayment. It's a starting guide, not a strict requirement.
- What is a good savings rate?
- Financial independence advocates recommend 20%+ savings rate. A rate of 10-15% is considered solid for most people. Saving just 5-10% will still accumulate wealth over time, but retirement may arrive later.
- Should I include super contributions in my savings rate?
- Yes — if you include your employer's super contributions (currently 11.5%), your total savings rate is higher than it looks. Super is savings, just locked away until retirement.