Budget Calculator

Plan your personal finances with our free budget calculator. Track your income, expenses, and analyze spending patterns to improve your financial health.

Budget Calculator

Track your income and expenses to create a balanced budget

Income

Salary & Wages

$

Investments

$

Other Income

$

Expenses

Housing

$
$

Transportation

$
$
$

Debt Payments

$
$

Living Expenses

$
$
$

Healthcare

Children

Savings & Investments

$
$

Miscellaneous

What is a Budget?

A budget is a financial plan that outlines your income and expenses over a specific period. It's essentially a roadmap for your money that helps you understand where your money is coming from and where it's going.

Creating and following a budget allows you to make informed financial decisions, prioritize your spending, and work toward your financial goals like debt reduction, saving for major purchases, or building wealth for the future.

Benefits of Budgeting

  • Gain control over your finances and reduce financial stress
  • Avoid or get out of debt by managing your spending
  • Save for future goals such as retirement, education, or vacations
  • Prepare for unexpected expenses with emergency funds
  • Develop better spending habits and financial discipline

How to Use This Calculator

  1. Enter all your income sources with amounts and frequency (monthly or yearly)
  2. Input your expenses across different categories
  3. Click 'Calculate Budget' to see your financial summary
  4. Review the expense breakdown to identify where your money is going
  5. Download the results for your records or to share with financial advisors

Common Budgeting Rules

The 50/30/20 Rule

This popular budgeting method suggests dividing your after-tax income into three categories:

  • 50% for Needs: Essential expenses like housing, food, utilities, transportation, and minimum debt payments.
  • 30% for Wants: Non-essential purchases like dining out, entertainment, vacations, and hobbies.
  • 20% for Savings: Retirement contributions, emergency fund, debt repayment beyond minimums, and other savings goals.

The 60/20/20 Rule

A variation that prioritizes living expenses and splits the remainder between savings and debt repayment:

  • 60%: Necessary living expenses (housing, food, utilities, transportation, etc.)
  • 20%: Long-term savings and investments
  • 20%: Debt repayment

The 70/20/10 Rule

Another approach that allocates 70% to living expenses, 20% to savings, and 10% to debt repayment or donations/charity.

Budgeting Tips for Success

  • Track Every Expense: Keep records of all your spending, no matter how small, to get an accurate picture of your habits.
  • Build an Emergency Fund: Aim to save 3-6 months of essential expenses in an easily accessible account for unexpected situations.
  • Review and Adjust Regularly: Your budget should be flexible. Review it monthly and adjust as your income, expenses, or goals change.
  • Prioritize Debt Repayment: Focus on high-interest debt first while maintaining minimum payments on other debts.
  • Automate Savings: Set up automatic transfers to savings accounts to ensure you consistently save before spending.

Frequently Asked Questions

How often should I update my budget?

It's best to review your budget monthly to track your progress and make adjustments as needed. Major life changes like a new job, relocation, or changes in family size should trigger an immediate budget review.

What's the difference between fixed and variable expenses?

Fixed expenses remain the same each month (like rent or mortgage payments), while variable expenses fluctuate (like groceries or entertainment). Both should be included in your budget, but variable expenses may require more careful tracking and adjustments.

Should I budget using gross or net income?

Most personal budgets should use net (take-home) income, which is what you actually have available to spend after taxes and other automatic deductions like health insurance or retirement contributions.

What's a good savings rate to aim for?

Financial experts typically recommend saving at least 20% of your income, but any savings is better than none. Start with what you can afford, then gradually increase your savings rate as your income grows or expenses decrease.

How can I budget for irregular expenses?

For irregular but predictable expenses (like annual insurance premiums or holiday gifts), divide the total yearly cost by 12 and set aside that amount monthly in a dedicated savings account. This creates a 'sinking fund' that will be ready when the expense comes due.