Budget Calculator
See where your money goes each month, and whether you’re spending more than you earn.
Monthly Income
Needs (Essential Spending)
Wants (Discretionary Spending)
Savings & Extra Debt Repayment
Full Breakdown
Budget Calculator
This Budget Calculator adds up your monthly income and your planned spending across needs, wants and savings, so you can see whether you’re spending within your means — and where your money is actually going. It also compares your split against the widely used 50/30/20 budgeting guideline as an illustrative reference point.
How to Use This Calculator
- Enter your monthly income — your take-home pay after tax, plus any other regular income.
- Enter your needs — essential spending you couldn’t easily cut, like housing, utilities, groceries, transport and insurance.
- Enter your wants — discretionary spending like eating out, subscriptions and shopping.
- Enter your savings and extra debt repayment — money set aside beyond minimum debt payments.
- Click Calculate Budget to see your total income, total allocated spending, and whether you have a surplus or deficit.
What Is the 50/30/20 Rule?
The 50/30/20 rule is a widely used budgeting guideline that suggests allocating roughly 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment beyond the minimum. It’s a simple starting point rather than a strict rule — your own split will depend on your circumstances, such as the cost of living in your area, your income level, and your financial goals. This calculator shows your actual split alongside the 50/30/20 guideline so you can see how they compare.
What Counts as a Need vs a Want?
| Needs (Essential) | Wants (Discretionary) |
|---|---|
| Rent or mortgage | Eating out and takeaways |
| Utility bills | Streaming and other subscriptions |
| Groceries | Hobbies and entertainment |
| Transport to work | Non-essential shopping |
| Insurance and minimum debt payments | Holidays |
The line between needs and wants isn’t always clear-cut — a streaming subscription might be a want for one household and a genuine need for someone who relies on it for work, for example. Use your own judgement about what’s essential in your circumstances.
What If I Have a Deficit?
A deficit means your planned spending is higher than your income — a sign that something needs to change, either by increasing income or reducing spending. Start by looking at your wants category, since discretionary spending is usually easier to adjust than fixed essential costs. If debt is part of the picture, our Debt Repayment Calculator can help you compare payoff strategies.
Frequently Asked Questions
What is the 50/30/20 budget rule?
It’s a widely used guideline suggesting roughly 50% of after-tax income goes to needs, 30% to wants, and 20% to savings and debt repayment beyond minimums. It’s a general starting point rather than a rule everyone needs to follow exactly — your ideal split depends on your income, location and financial goals.
What should I count as income?
Use your take-home pay — income after tax, National Insurance and pension contributions — plus any other regular income such as benefits or side income. Leave out one-off or irregular payments, since a budget works best when it reflects money you can reliably count on each month.
Should minimum debt payments count as a need or a want?
Minimum debt payments are generally treated as a need, since missing them can have serious consequences like fees, damaged credit or default. Any payments beyond the minimum — extra repayments to clear debt faster — are counted separately in this calculator, alongside savings.
What does a surplus or deficit mean?
A surplus means you have money left over after everything you’ve allocated to needs, wants and savings — you could choose to save more, pay down extra debt, or simply enjoy the buffer. A deficit means your planned spending exceeds your income, which means either your spending needs to come down or your income needs to go up to balance the budget.
How often should I update my budget?
Many people find it useful to revisit their budget monthly, or whenever income or major expenses change — a new job, a rent increase, or a new subscription, for example. Keeping the categories consistent over time makes it easier to spot trends.