Budget Calculator
Build your monthly budget, track spending by category, and see your savings rate
// 50 / 30 / 20 Rule
// Expense Breakdown
// Annual Projection
How to Use the Budget Calculator
Enter your income sources and monthly expenses across three categories — Needs, Wants, and Savings — to build a complete picture of your finances. The calculator compares your budget to the 50/30/20 rule and shows your savings rate, leftover money, and annual projection.
The 50/30/20 Rule
Popularised by US Senator Elizabeth Warren, the 50/30/20 rule is a simple budgeting framework. Spend no more than 50% of take-home pay on needs (rent, food, utilities, transport), no more than 30% on wants (dining out, entertainment, hobbies), and save or put at least 20% toward savings and debt repayment.
Needs vs Wants
Needs are expenses you cannot avoid — housing, groceries, utility bills, minimum debt payments, insurance, and essential transport. Wants are lifestyle choices — restaurants, streaming services, gym memberships, holidays, and non-essential shopping. The line between needs and wants is personal and context-dependent.
What Savings Rate Should I Target?
A 20% savings rate is a solid general target. Financial independence enthusiasts often target 40–60% or more to retire early. If 20% is not currently achievable, start with whatever you can and increase it gradually. Even a 5% savings rate compounds significantly over decades.
From the Blog
// Pay Yourself First
Transfer savings automatically on payday before spending anything. Treat it like a non-negotiable bill.
// Track Every Month
Review your budget at month end. Consistent tracking is more important than having a perfect budget from day one.
// Emergency Fund First
Before investing, build 3–6 months of expenses as an emergency fund. This prevents debt when life happens.
// Small Cuts Add Up
Cancelling £10 of unused subscriptions and saving that extra each month compounds to over £1,500 in 10 years.