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50/30/20 Budget Calculator

How should you split your pay? Enter your monthly income to see your needs (50%), wants (30%) and savings (20%) budget - then compare it to what you actually spend.

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$
$
Recommended plan (50/30/20)
Needs50%
$2,500
Rent, groceries, transport, bills, insurance
Wants30%
$1,500
Dining out, fun, subscriptions, hobbies
Savings20%
$1,000
Investing, saving, extra debt payoff
Your savings rate
100%
Excellent - your wealth compounds fast

The 50/30/20 rule (Senator Elizabeth Warren) is a starting guideline, not a strict law - in high-cost areas needs can run higher. Alvest turns your 20% into invested, inflation-beating wealth.

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Frequently asked

What is the 50/30/20 budget rule?

The 50/30/20 rule splits your after-tax income into three buckets: 50% for needs (rent, groceries, transport, bills), 30% for wants (dining out, entertainment, subscriptions) and 20% for savings and debt payoff. Popularised by US Senator Elizabeth Warren in "All Your Worth", it is a simple, flexible starting framework.

How much of my income should I save?

The rule targets at least 20% savings. A higher rate (30%+) builds wealth much faster thanks to compounding. If you are below 20%, the easiest place to find room is usually the 30% "wants" bucket.

What counts as a need vs a want?

A need is essential spending you cannot avoid: housing, basic food, transport, utilities, healthcare, insurance, minimum debt payments. A want makes life better but is optional: eating out, entertainment, subscriptions, travel, brand shopping. Some categories can fall into either - the key is to classify honestly.

Does 50/30/20 work with high rents or inflation?

In high-cost cities or high-inflation periods, needs often exceed 50% - that is normal. Treat the rule as a target, not a law: optimise needs first, then protect at least some savings (even if under 20%). Small, consistent saving still compounds.

How do I grow my savings?

Holding your 20% in cash loses value to inflation over time. Directing it into investments (stocks, funds, gold, a diversified portfolio) earns a real return. Alvest tracks the real (inflation-adjusted) return and growth of that saving automatically.

Does Alvest track my budget?

Yes. Alvest combines your income, debt and expenses to compute real cash flow, your needs/wants/savings split and how much is free to invest - then projects it forward. You can start free.