Financial Calculators
50-30-20 Budget Calculator
Fifty for needs, thirty for wants, twenty for your future. The simplest budget that actually works.
- Needs (50%)
- ₹50,000
- Wants (30%)
- ₹30,000
- Savings and investing (20%)
- ₹20,000
- The 20% grows to (15 yrs)
- ₹1,00,91,520
The 50-30-20 rule is a starting frame, not a law. Households with modest rent often push savings past 30%; the point is to give savings a fixed, first claim on income.
A frame, not a cage
The 50-30-20 rule assigns half of take-home to needs (rent, groceries, EMIs, utilities), thirty percent to wants (dining, travel, upgrades) and twenty percent, minimum, to savings and investments. Its power is the order: savings get a fixed claim before lifestyle expands to fill the space.
Treat the percentages as a starting frame. Low-rent households push savings to 30-40%; expensive-city households trim wants first, needs second, savings never.
The split, and its future
Needs = 50%, Wants = 30%, Savings = 20% of take-home\nCorpus = savings SIPped at the chosen return (annuity-due)Worked example: a Rs 1,00,000 take-home splits into Rs 50,000 needs, Rs 30,000 wants and Rs 20,000 savings; that Rs 20,000 invested monthly at 12% for 15 years grows to about Rs 1,00,91,520.
Frequently asked questions
Do EMIs count as needs or savings?
Needs. An EMI is an obligation, not saving, even a home loan EMI (though its principal component does build equity). Keep the 20% for genuine investing.
What if my needs exceed 50%?
Common in metro rents. Trim wants before savings, and treat the next increment as a chance to restore the ratio rather than upgrade the lifestyle.
Where should the 20% actually go?
First a small emergency buffer, then goal-mapped SIPs. Automation on salary day is what makes the rule stick.
Is 20% enough to retire on?
Started early and stepped up with increments, very likely yes; the example shows a crore in 15 years from Rs 20,000. Started at 45, the ratio needs to be braver.
Give every rupee a job.
We turn the 20% into automated, goal-mapped investing on salary day.