50/30/20 budget
Split net income: 50% needs, 30% wants, 20% savings
Needs
50 000,00 ₽
50% of income
Wants
30 000,00 ₽
30% of income
Savings
20 000,00 ₽
20% of income
Allocation
Reference block: the method, a worked example and answers to common questions. It does not affect the calculation above.
How it is calculated
- The 50/30/20 rule splits net monthly income into three envelopes: 50% for needs (housing, food, transport, loan payments), 30% for wants (entertainment, subscriptions, eating out), 20% for savings and early debt repayment.
- Each category’s target is a share of income: target = income * percent / 100. The share is applied as an exact fraction, and each target is rounded to the kopeck once from its own true value — never bent to make the neighbours add up.
- Enter the actual spend per category and the calculator shows the deviation from each target: overspending needs or wants is a warning sign, while “overspending” savings is a reason to be pleased.
- The unallocated remainder is income minus all actual spend: positive money awaits assignment, negative means the month ran at a loss.
Worked example
The figure the page opens with: income of 100 000 ₽ a month. The targets: 50 000 ₽ for needs, 30 000 ₽ for wants and 20 000 ₽ for savings.
Say the month actually took 55 000 ₽ of needs, 35 000 ₽ of wants and 5 000 ₽ of savings: the calculator shows +5 000 ₽ and +5 000 ₽ overspend in the first two envelopes, a 15 000 ₽ shortfall in savings, and 5 000 ₽ left unallocated.
Frequently asked questions
Why 50/30/20 exactly?
It is an empirical rule of reasonable balance: half the income usually covers needs without austerity, a fifth into savings builds a visible reserve within a few years, and a third for wants keeps the budget livable. A guideline, not a dogma.
What counts as a need versus a want?
A simple test: can you drop it for a month without consequences? Rent, utilities, food, medicine, minimum loan payments are needs. Subscriptions, delivery, cafés and mood-driven shopping are wants.
Income before or after tax?
After — the rule works with the money that actually lands on the card. If income is uneven, take a 3-6 month average; the “Income and expense ledger” helps compute it.
My needs exceed 50% — is the rule broken?
No — that is a diagnosis, not a verdict: the rule shows where to look. Needs are hard to cut quickly, so squeeze wants first and keep at least a symbolic savings share. If loans are the pressure, see “Debt load” and “Refinancing”.
Where should the savings envelope go?
Until you have a reserve — into the emergency fund (its calculator shows how long the fill takes). After that, by goals: “Savings goal” turns a dream into a monthly contribution, and “Deposit” shows growth at your rate.
How do I track the rule month to month?
Log spending in the “Income and expense ledger” — it breaks the month down by articles, so the three envelopes’ actuals are at hand. This calculator saves what you enter as a draft automatically.
Does the rule work with an unstable income?
Yes, with one adjustment: size the envelopes not from the best month but from a six-month average — or, safer, from the worst one. Whatever arrives above that base goes to savings and the emergency fund, so a lean month never breaks the budget and a generous one speeds up the goals.