Monthly Budget Calculator

Plan your monthly finances by entering your income and expenses to see your budget balance, savings rate, and spending breakdown.

Formulas Used

Estimated Taxes = Gross Income × (Tax Rate / 100)

Net (Take-Home) Income = Gross Income − Estimated Taxes

Total Expenses = Housing + Utilities + Food + Transportation + Healthcare + Entertainment + Other

Remaining Balance = Net Income − Total Expenses − Savings Goal

Savings Rate (%) = (Savings Goal / Net Income) × 100

Expense-to-Income Ratio (%) = (Total Expenses / Net Income) × 100

50/30/20 Rule: Needs (housing, utilities, food, transport, healthcare) ≤ 50% of net income; Wants (entertainment, other) ≤ 30%; Savings ≥ 20%.

Assumptions & References

  • Tax rate is a simplified flat-rate estimate; actual taxes depend on filing status, deductions, and jurisdiction. Use IRS tax brackets for precision (IRS 2024).
  • The 50/30/20 rule was popularized by Senator Elizabeth Warren in All Your Worth: The Ultimate Lifetime Money Plan (2005) and is widely recommended by financial advisors.
  • An emergency fund of 3–6 months of expenses is recommended by the Consumer Financial Protection Bureau (CFPB).
  • All values are monthly. Annual figures can be obtained by multiplying by 12.
  • This calculator does not account for irregular income, bonuses, or variable expenses.

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