Calculate Your 50/30/20 Budget
Enter your monthly take-home pay (after tax, NI, and pension deductions) to see how to split your money.
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Detailed Budget Breakdown
Enter your income and actual expenses to see how they compare to the 50/30/20 rule.
Needs (Essential Expenses)
Wants (Lifestyle Expenses)
Savings & Debt Repayment
Compare Budget Ratios
The 50/30/20 rule isn't for everyone. Compare different budget ratios to find what works for you.
Monthly Budget Tracker
Track your spending against your 50/30/20 targets throughout the month.
Frequently Asked Questions
What is the 50/30/20 budget rule and how does it work in the UK?
The 50/30/20 rule is a budgeting method popularised by US Senator Elizabeth Warren in her book 'All Your Worth'. It divides your after-tax income (take-home pay) into three categories: 50% for needs (rent, mortgage, utilities, groceries, minimum debt payments, insurance), 30% for wants (dining out, entertainment, hobbies, subscriptions, holidays), and 20% for savings and extra debt repayment (emergency fund, pension contributions, ISA savings, paying off credit cards). In the UK context, 'after-tax income' means your salary after Income Tax, National Insurance, and any pension contributions are deducted.
Is 50/30/20 realistic for UK living costs in 2025?
The 50/30/20 rule can be challenging in high-cost UK areas. Average UK rent in 2024 is £1,283/month, meaning someone needs £2,566/month take-home just to meet the 50% needs threshold for rent alone. In London, average rent is £2,121/month. Many UK financial experts suggest the 50/30/20 rule works best as an aspirational target. If housing costs exceed 30% of income, consider alternatives like 60/20/20 or 70/20/10. The Money and Pensions Service (MaPS) recommends saving at least 3 months' expenses as an emergency fund regardless of which budget method you use.
What counts as 'needs' vs 'wants' in a UK 50/30/20 budget?
In UK budgeting, 'needs' are essential expenses you can't avoid: rent/mortgage payments, Council Tax, utilities (gas, electricity, water), groceries (not takeaways), transport to work, minimum debt payments, home/contents insurance, childcare if you work, and NHS prescriptions. 'Wants' are nice-to-haves: Sky/Netflix subscriptions, gym membership, dining out, new clothes beyond basics, hobbies, holidays, and premium phone contracts. Some items are grey areas: a basic mobile phone is a need, but an iPhone 15 Pro Max is a want. Basic broadband may be a need for work; fibre with TV package is a want.
How should I allocate the 20% savings in the UK?
UK residents should prioritise savings in this order: (1) Emergency fund in an easy-access account (aim for 3-6 months' expenses), (2) Employer pension match (free money - don't miss it), (3) High-interest debt repayment (credit cards, store cards), (4) ISA contributions (£20,000 annual allowance tax-free), (5) Additional pension (up to £60,000 annual allowance with tax relief), (6) LISA for first home (25% government bonus on up to £4,000/year). For 2025/26, Premium Bonds offer up to 4.4% prize fund rate, while the best easy-access savings accounts offer around 5% AER.
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