📊 Budget Calculator

Plan your personal finances, track income vs expenses, and optimize your spending

💰 Income Sources
Primary Income
$
Secondary Income
$
Other Income
$
💸 Expense Categories
Housing (Rent/Mortgage)
$
Utilities
$
Food & Groceries
$
Transportation
$
Healthcare
$
Entertainment
$
Debt Payments
$
Other Expenses
$
20%
Calculating... Please wait.
💰 Total Income
-$
Per month
💸 Total Expenses
-$
-% of income
📈 Net Balance
-$
🎯 Savings Goal
-$
💡 Budget Recommendations

📊 How Budget Planning Works

Effective budget planning involves understanding your income, tracking your expenses, and allocating funds toward your financial goals. The most successful budgets balance needs, wants, and savings.

The basic budget calculation formula is:

Net Income = Total Income - Total Expenses

Key budgeting principles:

  • 50/30/20 Rule: Allocate 50% to needs, 30% to wants, and 20% to savings
  • Zero-Based Budgeting: Every dollar has a purpose, with income minus expenses equaling zero
  • Pay Yourself First: Prioritize savings by setting aside money before paying expenses
  • Emergency Fund: Maintain 3-6 months of living expenses for financial security

Regularly tracking your expenses against your budget helps identify spending patterns, reduce unnecessary costs, and accelerate progress toward your financial goals.

❓ Budgeting FAQs
What is the 50/30/20 budget rule? +

The 50/30/20 rule is a popular budgeting guideline that suggests allocating 50% of your after-tax income to needs (housing, utilities, groceries), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment.

How much of my income should I save? +

Financial experts typically recommend saving at least 20% of your income. However, the exact percentage depends on your financial goals, age, and current financial situation. Aim to increase your savings rate over time.

What's the difference between fixed and variable expenses? +

Fixed expenses remain constant each month (rent, mortgage, insurance premiums), while variable expenses fluctuate (groceries, entertainment, utilities). Understanding this distinction helps create a more flexible and effective budget.

How often should I review my budget? +

It's recommended to review your budget monthly to track your progress and make adjustments. A more comprehensive review every 3-6 months helps accommodate income changes, life events, and shifting financial priorities.

What should I do if my expenses exceed my income? +

If expenses exceed income, prioritize essential expenses first. Then look for areas to reduce spending, consider increasing income through side jobs, and explore options to reduce fixed costs like refinancing debt or negotiating bills.