Quick answer
On $5,000 a month take-home: $2,500 for needs, $1,500 for wants and $1,000 for savings.
How it works
The 50/30/20 rule puts half your take-home pay toward needs (housing, food, bills), 30% toward wants, and 20% toward savings and extra debt payments.
Formula
Needs = pay × 50% · Wants = pay × 30% · Savings = pay × 20%
Assumptions & limitations
- Results are rounded for display.
Frequently asked questions
What if my needs are more than 50%?
That's common in expensive cities. Adjust the percentages under more options and aim to keep savings as high as you can.
Should I use gross or net pay?
Use take-home (net) pay — the amount that actually lands in your account.