Free budget tool

50/30/20 Budget Calculator

Q: Should I use gross or net income for the 50/30/20 budget?

Use your after-tax take-home income, the amount that actually lands in your account.

Q: What counts as a need vs a want?

Needs are essentials you can't skip: housing, groceries, utilities, transport, insurance, minimum debt payments. Wants are extras like dining out, subscriptions and travel.

Q: What if my needs are more than 50%?

Treat 50/30/20 as a target. Cover needs first, then split what is left between wants and savings, leaning toward savings.

Enter your monthly take-home income and see exactly how much to put toward needs, wants and savings.

Monthly after-tax income

NEEDS · 50%

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Essentials

Rent, groceries, utilities, transport, insurance, minimum debt payments.

WANTS · 30%

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Lifestyle

Dining out, subscriptions, travel, hobbies, shopping, entertainment.

SAVINGS · 20%

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Future you

Emergency fund, investments, extra debt payoff, long-term goals.

How it works

What is the 50/30/20 rule?

The 50/30/20 rule is a simple budgeting framework popularized by US Senator Elizabeth Warren. You split your after-tax income three ways: 50% on needs (the things you can't skip), 30% on wants (the things that make life good), and 20% on savings and paying down debt.

It's a starting point, not a straitjacket. If your rent eats more than 50%, trim wants first and protect savings. The point is to see the shape of your money at a glance and decide on purpose, instead of wondering where it all went.

That last part is where SumiQ comes in: log expenses by voice or a tap, and it auto-sorts them so you can see your real 50/30/20 split, not just the plan.

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Good to know

Budget FAQ

Should I use gross or net income?

Use your after-tax (take-home) income, the amount that actually lands in your account. If you have pre-tax deductions like a pension or health plan, the 50/30/20 split applies to what's left.

What counts as a need vs a want?

Needs are things you genuinely can't go without: housing, basic groceries, utilities, transport to work, insurance, and minimum debt payments. Wants are the upgrades and extras, dining out, streaming, travel, the nicer phone. A useful test: if skipping it for a month wouldn't hurt, it's probably a want.

What if my needs are more than 50%?

Very common in high-rent cities. Treat 50/30/20 as a target, not a rule. Cover your needs first, then split what's left between wants and savings, leaning toward savings when you can.

Does SumiQ track this automatically?

Yes. Log expenses by voice or a tap and SumiQ categorizes them, so you can compare your real spending to the 50/30/20 plan instead of guessing.