How this budget calculator works
Start with the money you actually receive each month after taxes and payroll deductions.
Subtract your essential expenses, such as housing, utilities, groceries and transportation.
Then subtract non-essential spending, including entertainment, dining out, hobbies and optional purchases.
Money left over = monthly take-home income − essential expenses − non-essential expenses
Monthly budget example
Suppose your monthly take-home income is $3,500.
You spend $1,800 on essentials and $900 on non-essential expenses.
- Monthly income: $3,500
- Essential expenses: $1,800
- Non-essential expenses: $900
- Money left over: $800
In this example, $800 remains available for savings, additional debt payments or other priorities.
What is the 50/30/20 guideline?
The 50/30/20 guideline is a commonly used budgeting framework.
It suggests allocating approximately:
- 50% of take-home income to essential needs.
- 30% to non-essential wants.
- 20% to savings or additional debt payments.
This is only a guideline. Housing costs, income stability, family responsibilities and debt may require a different approach.
Frequently asked questions
Should I use gross or net income?
Use your monthly take-home income, meaning the amount received after taxes and other payroll deductions.
Should I include irregular expenses?
Yes. Estimate a monthly amount for annual bills, repairs, insurance payments and other periodic costs.
Does leftover money count as savings?
Not automatically. Money left over becomes savings when you deliberately reserve or transfer it toward a goal.
What if my expenses exceed my income?
The calculator will show a negative remaining amount.
This indicates that your planned spending exceeds your entered monthly income.
Educational information only. This calculator does not provide personalized financial advice.