Aurora Finance
Calculator

Budget calculator (50/30/20)

The 50/30/20 rule is a low-friction starting point for budgeting: 50% of take-home to needs, 30% to wants, 20% to savings and debt payoff. Enter your numbers below.

Updated July 2026
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Recommended needs (50%)
$2,500
Current: $2,500
Recommended wants (30%)
$1,500
Current: $1,500
Recommended savings (20%)
$1,000
Current: $1,000

How it works

Needs = Net × 0.50 | Wants = Net × 0.30 | Savings = Net × 0.20
  • Enter your monthly take-home pay (after tax and any pre-tax deductions).
  • Enter your current spending on essentials (rent, food, utilities, minimum debt).
  • Enter your current lifestyle spending (dining, entertainment, subscriptions, hobbies).
  • The calculator computes recommended amounts and highlights any gap.

Worked examples

  • $5,000 take-home: recommended $2,500 needs / $1,500 wants / $1,000 savings.
  • In high-cost cities, actual needs often exceed 50% — either accept a lower wants budget or restructure fixed costs.
  • Savings-focused variants (60/20/20 or 50/20/30) are common when acceleration is the goal.

Frequently asked questions

Is 50/30/20 realistic?

For many earners, yes. In high-cost cities, needs can exceed 50% — the framework still helps by making that trade-off visible instead of accidental.

What counts as a need vs a want?

Needs keep you housed, fed, healthy, and employed. Everything else — including nicer versions of needs — is a want. Being honest about the split is the whole point of the exercise.

How do I raise my savings rate?

Automate savings the day after payday, and send half of every raise to savings before you feel it in your spending.

Related

How to budget
Full framework and four proven methods.
50/30/20 rule (glossary)
Definition and details.
Saving rate (glossary)
Why saving rate beats investment return early on.
Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.