How this calculator works
Percentage rules are starting points, not requirements: pick the one closest to your life, see what each bucket is worth in dollars, then compare it with what your bills actually take. 50/30/20 has its own tool; this one covers the other common splits and a custom one.
- Each bucket = monthly take-home pay × its percentage ÷ 100; the yearly figure is 12 times that.
- 70/20/10: living costs 70%, savings 20%, debt payoff or giving 10%. 60/30/10: needs 60%, wants 30%, savings 10%. 80/20: spending 80%, savings first 20%. 60/20/20: needs 60%, wants 20%, savings and debt 20%.
- A custom split must add up to 100%, or the calculator asks you to fix it.
Worked example
With these inputs: monthly take-home pay $4,200; split 70/20/10.
The result is 70/20/10 of $4,200.00 $2,940.00, with living costs 70% of take-home. Compare the first bucket with your total monthly bills: if bills are bigger, a stricter split is not the fix — the bills are.
Which split fits you?
70/20/10 suits people who want a strong savings habit and a set amount for debt, with everything else — needs and wants — in one living-costs bucket. 60/30/10 gives more room for wants and less for savings. 80/20 is the simplest of all: save 20% first and spend the rest however you like. 60/20/20 is a stricter version of 50/30/20 for someone paying down debt.
The 50/30/20 rule has its own calculator. If none of these fit, the custom split lets you set your own three percentages.
When the living-costs bucket is too small
Add up your monthly bills — rent, utilities, insurance, transport, minimum debt payments, groceries — and compare them with the first bucket. If bills are bigger, choosing a stricter rule won't fix it; the bills themselves are the problem. The Monthly Budget Calculator lists them line by line, and the bill increase and subscription calculators show which ones grew.
Rules are starting points. A split you can actually keep for twelve months beats a stricter one you abandon in February.
Sources
Frequently asked questions
What is the 70/20/10 budget rule?
Spend 70% of take-home pay on living costs, save 20%, and put 10% toward debt or giving. On $4,200 a month that's $2,940 to live on, $840 to save and $420 for debt or giving.
What is the 60/30/10 rule?
60% for needs, 30% for wants and 10% for savings. It allows more discretionary spending than 50/30/20 or 70/20/10, and less saving.
Is 70/20/10 better than 50/30/20?
Neither is better in general. 70/20/10 saves more and doesn't separate needs from wants; 50/30/20 draws a line between needs and wants. Try both with your own pay and bills.
Should I use take-home pay or gross pay?
Take-home pay — what actually arrives after tax and deductions. If you already save through a workplace retirement plan, you can count that toward the savings bucket.
Can I make my own split?
Yes. Choose Custom and enter three percentages that add up to 100%. The calculator shows each bucket per month and per year.