Budget Planner (50/30/20)
Plan your monthly budget using the 50/30/20 rule. Allocate income to Needs, Wants and Savings. Track surplus and savings rate.
Disclaimer
This calculator provides estimates for general information purposes only. Results are based on standard formulas and may not reflect your individual circumstances. Always consult a qualified professional for advice specific to your situation.
Frequently Asked Questions
What is the 50/30/20 budget rule?
What counts as a 'Need' vs a 'Want'?
What if I can't afford the 50/30/20 split?
How much should I have in an emergency fund?
What is Budget Planner (50/30/20)?
The 50/30/20 rule is a simple budgeting framework popularised by US Senator Elizabeth Warren in her book 'All Your Worth'. It allocates after-tax income into three buckets: 50% for Needs (essentials), 30% for Wants (lifestyle), and 20% for Savings and debt repayment.
How this calculator works
Enter your net (after-tax) income and the calculator allocates 50%, 30%, and 20% to each bucket. Then itemise your monthly expenses, tagging each as a Need, Want, or Saving. The dashboard shows budget vs actual per bucket, total surplus or deficit, and your overall savings rate. Income can be entered weekly, fortnightly, monthly, or annual — converted to monthly internally.
What's a Need vs a Want?
Needs = essentials you can't reasonably avoid: rent or mortgage, basic groceries, utilities, transport (essential commuting), health insurance, minimum debt repayments. Wants = nice-to-haves that improve your lifestyle: dining out, streaming services, gym memberships, holidays, premium grooming, hobby spending. The line is personal — be honest with yourself. A specific $1,500 phone is a 'want' even if you 'need' a phone.
Savings/Debt Bucket
The 20% savings bucket includes: emergency fund building (until you have 3-6 months expenses), super top-ups (concessional contributions), investment property deposits, ETF/share investments, and EXTRA debt repayment beyond the minimum. Minimum debt repayments are 'Needs' (you're contractually required); extra repayments are 'Savings'.
Adjusting for High Cost of Living
In Sydney and Melbourne, where rent or mortgage often exceeds 40% of income alone, the standard 50/30/20 may be unrealistic. Common alternatives: 60/20/20 (more for needs, less for wants), 70/15/15 (survival mode early career), or 50/20/30 (aggressive saving for FIRE). The framework is more important than the exact percentages — track and improve gradually.
Pre-Tax Super Salary Sacrifice
If you salary sacrifice into super, that money is removed before you see your 'net' income — meaning it doesn't show in your 50/30/20 split. Two options: (1) add salary sacrifice back to gross and count as part of your 20% Savings bucket, or (2) treat your reduced take-home as the input and just be aware your true savings rate is higher than displayed.
Emergency Fund Sizing
Your emergency fund should cover 3-6 months of essential expenses (Needs only, not Wants). Self-employed or single-income households should aim for 6-12 months. Keep it in a high-interest savings account, separate from your everyday account, for liquidity. Many Australians use offset accounts on their mortgage for the dual benefit of liquidity and interest savings.
Beyond 50/30/20
Once you've established the basics, consider more advanced frameworks: zero-based budgeting (every dollar has a job), pay-yourself-first (auto-transfer to savings the day you're paid), envelope budgeting (cash for variable spending). The best system is one you'll actually stick to long-term.
Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).
Official Sources
All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.
Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.