Educational Purpose Only: Values update in real time as you type. All amounts are monthly.
Monthly Expenses
Monthly Income
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Total Expenses
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Surplus
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How it works
Enter your total monthly income and then fill in your spending amounts for each category. The calculator instantly shows total expenses, remaining savings, and a colour-coded progress bar for each category showing what percentage of your income it consumes. Categories consuming more than 30% of income are highlighted in amber, and those above 50% in red, so you can quickly spot areas to review.
A common budgeting guideline is the 50-30-20 rule: allocate 50% of income to needs (housing, food, utilities), 30% to wants (entertainment, clothing), and 20% to savings and investments. Use this calculator to see how your current spending compares.
The 50/30/20 rule in practice
Mapped onto the categories in the calculator above, “needs” generally covers Housing (Rent/EMI), Food & Groceries, Transportation, Utilities, and Healthcare — the costs that recur every month regardless of choice. “Wants” covers Entertainment, Clothing, and most of what falls under Other. The remaining fifth is the Savings/Investments line: money set aside before it has a chance to be spent on anything else.
Here is how that split looks for a monthly take-home of ₹80,000:
| Bucket | Typical spend | Amount | Share of income |
|---|---|---|---|
| Needs | Rent, groceries, utilities, EMIs | ₹40,000 | 50% |
| Wants | Dining out, entertainment, subscriptions | ₹24,000 | 30% |
| Savings | SIPs, RD, emergency fund top-up | ₹16,000 | 20% |
| Total | — | ₹80,000 | 100% |
Treat this split as a starting framework, not a rule to force. In high cost-of-living cities such as Mumbai, Bengaluru, or Delhi NCR, rent alone can run 30–40% of take-home pay, pushing the realistic “needs” share to 60% or more, especially early in a career. When that happens, trim the wants bucket first — dining out, subscriptions, upgrades — rather than cut savings to zero. A budget that ends up 55/25/20 or 60/20/20 is still a working budget, as long as the savings line stays non-negotiable.
Once you know your monthly savings figure, use the Savings Goal Calculator to see how long it takes to reach a specific target, and the Net Worth Calculator to track how that monthly surplus compounds into overall wealth over time.
Common budgeting mistakes to avoid
No Emergency Fund Before Investing
Aggressively funding SIPs while skipping the emergency fund means any job loss or medical bill forces you to redeem investments early, often at a loss. Build 3–6 months of expenses in a liquid fund first, then increase equity allocation.
Ignoring Small Recurring Subscriptions
OTT platforms, cloud storage, app subscriptions, and gym memberships rarely show up as a single large expense, so they get overlooked. Individually small, ₹200–500 charges across six or seven services can quietly consume 3–5% of income. Audit them every quarter.
Treating Every EMI as a Fixed 'Need'
A home loan EMI is a genuine need. A personal loan EMI for a phone upgrade or vacation is a want you are paying interest on. Before slotting an EMI into the needs bucket, check whether the underlying debt was avoidable, and prioritise paying off high-interest discretionary loans over new investing.
Not Paying Yourself First
Invest your SIP amount on the day you receive your salary — before spending on wants. Waiting until 'whatever is left' rarely results in consistent savings.
Frequently Asked Questions
What is the 50-30-20 budgeting rule?
The 50-30-20 rule suggests allocating your take-home income as: 50% to needs (housing, food, utilities, transport, insurance), 30% to wants (dining out, entertainment, hobbies, subscriptions), and 20% to savings and investments (emergency fund, SIP, retirement). It is a simple starting framework — adjust the percentages to match your goals.
How much of income should go to rent?
A common guideline is to spend no more than 25–30% of your take-home salary on rent. Spending above this threshold strains the rest of your budget, leaving little room for savings and other needs. If your rent exceeds 30%, consider moving to a lower-cost area or increasing your income.
What is a good savings rate?
Financial planners generally recommend saving at least 20% of your net income. If you are in the early stages of your career, start with 10% and increase by 1% with each salary increment. The higher your savings rate, the faster you build wealth and achieve financial independence.
What is an emergency fund and how large should it be?
An emergency fund is 3–6 months of essential living expenses kept in a liquid, low-risk account (savings account or liquid mutual fund). It covers unexpected events like job loss, medical emergencies, or urgent repairs without derailing your investment plan. Build this first before investing in long-term instruments.
Related Calculators
This calculator is for educational and illustrative purposes only. Actual budgeting needs vary by individual and family circumstances.