Budget Calculator
Track your income, expenses, and savings with the 70/20/10 rule
Monthly Income
Essential Expenses
Recommended: ~70% of income
Lifestyle Expenses
Recommended: ~20% of income
Savings & Goals
Recommended: ~10% of income
Budget Summary
Annual Projections
Spending Breakdown
70/20/10 Rule
How to Use Our Budget Calculator
Our free budget calculator helps you create a balanced budget using the 70/20/10 rule. Simply enter your monthly income and track your essential expenses, lifestyle spending, and savings goals. Get visual charts and insights to help you achieve financial wellness.
Frequently Asked Questions
What is the 70/20/10 budget rule?
The 70/20/10 rule is a practical budgeting method where you allocate 70% of your income to essential expenses (housing, utilities, groceries, transportation), 20% to lifestyle spending (entertainment, dining out, hobbies), and 10% to savings and debt repayment. This rule is realistic for people with tight budgets.
How much should I save each month?
Aim to save at least 10% of your income. Start with an emergency fund of 3-6 months of expenses, then focus on retirement savings and specific goals like a down payment or vacation fund. If you can save more, that's even better!
What are essential vs lifestyle expenses?
Essential expenses are necessities you need to survive: housing, utilities, groceries, healthcare, and transportation. Lifestyle expenses are wants like dining out, entertainment, hobbies, and subscriptions. If you could live without it, it's likely a lifestyle expense.
How do I stick to my budget?
Track your spending regularly, use cash or debit for discretionary purchases, automate savings, and review your budget monthly. Start with small realistic goals and adjust as needed. Apps and tools like this calculator can help you stay accountable.
What if my expenses exceed my income?
If spending exceeds income, start by cutting lifestyle expenses, look for ways to reduce essential costs (cheaper phone plan, reduce utilities), consider increasing income through a side hustle, or seek financial counseling for debt management strategies.
How often should I review my budget?
Review your budget monthly to track actual spending against planned amounts. Do a more thorough review quarterly to adjust for life changes, and annually to set new financial goals and account for income changes or major life events.
Is the 70/20/10 rule better than 50/30/20?
The 70/20/10 rule is more realistic for people with tight budgets or those living in high-cost areas. While the 50/30/20 rule allocates more to savings (20%), the 70/20/10 rule recognizes that many people need more for essentials. Choose the rule that fits your financial situation.
Can I customize the budget categories?
Yes! Our calculator allows you to add custom expense categories using the "Add Custom Expense" buttons. This helps you track specific spending areas that matter to your lifestyle, such as pet care, subscriptions, or professional development.