Budget Calculator — Calculations & Slabs for FY 2026-27

The 50/30/20 rule is a popular personal finance guideline. It suggests dividing your net monthly income into three simple spending blocks: 50% for Needs (essential living costs), 30% for Wants (lifestyle choices and discretionary spending), and 20% for Savings, investments, and debt payments beyond the minimum requirements.

Needs are critical expenses required for basic survival and livelihood. This includes rent/mortgage, utilities, transit costs, basic groceries, health insurance, and minimum loan payments. Wants are choices that enhance your lifestyle but are optional, such as dining out, streaming subscriptions, hobbies, designer shopping, and travel.

By inputting your income and categorizing your monthly expenses into Needs, Wants, and Savings, this tool calculates your total spending, remaining cash flow, and savings rate. It projects your exact budget allocations alongside the 50/30/20 standard and provides personalized adjustment suggestions.

If your retirement savings (like a 401k or pension contribution) are deducted before you receive your paycheck, you have two options. You can either add that contribution back to your net salary figure and record it under the Savings category, or budget solely using your net take-home pay (treating the retirement savings as already accomplished).

If your expenses exceed your income, you have a budget deficit. Start by reviewing your Wants category—this is the easiest place to reduce costs by pausing subscriptions or eating out less. If your Needs alone exceed 50% of your income, you may need to look at larger cost-cutting measures, such as downsizing housing or refinancing debts.