50-30-20 Budget Calculator
The 50-30-20 rule is a simple way to plan your salary. Half goes to needs, 30% to wants and 20% to savings and investments. Enter your take-home pay to see your own numbers, then send your savings amount straight to the SIP calculator.
Enter your salary
How to use this calculator
- Enter your monthly take-home salary (after tax and PF).
- See your needs, wants and savings amounts.
- Tap the button to plan a SIP with your 20%.
Formula
Needs = 50% · Wants = 30% · Savings = 20% of take-home pay
Needs are rent, groceries, utilities, EMIs, insurance and school fees. Wants are eating out, shopping, OTT and trips. Savings include SIPs, PPF, emergency fund and extra loan repayment.
Example
On a take-home salary of ₹60,000, the rule suggests ₹30,000 for needs, ₹18,000 for wants and ₹12,000 for savings and investments every month.
50-30-20 Budget Calculator: common questions
What if my needs are more than 50% of my salary?
That is common in big cities or with a home loan. Treat 50-30-20 as a starting point: trim wants first, keep at least some savings every month, and raise the savings share as your income grows.
Should I use gross salary or take-home salary?
Use take-home salary, the amount that actually reaches your bank account after tax, PF and other deductions.
Do EMIs count as needs or savings?
EMIs usually count as needs because they must be paid every month. Extra prepayments on a loan can count as savings.
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