Current for 2026•As of: July 2026

Household Budget Calculator plan your budget.

Calculate your optimal budget with the 50/30/20 rule and find out whether your spending mix is healthy.

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Income

€
1,000 €20,000 €

Enter only your income for an automatic 50/30/20 recommendation

The 50/30/20 rule

This popular budgeting method was popularized by Elizabeth Warren: 50% for basic needs, 30% for wants, 20% for savings.

Note

The 50/30/20 rule is a guideline, not a strict rule. Adjust the distribution to your life situation. In expensive cities, rent alone can make up 40%+.

Monthly surplus

€0

Income: €3,000 · Expenses: €2,400

50/30/20 rule: your distribution

Needs (fixed)

€1,500

50% · Target: 50%

Wants (variable)

€900

30% · Target: 30%

Savings/investing

€600

20% · Target: 20%

Deviation from the recommendation

Needs+€0
Wants+€0
Savings+€0

Recommendations

Great! Your savings rate meets or exceeds the recommendation.

Distribution at a glance

Needs
Wants
Savings

The 50/30/20 rule

  • 50% for needs: rent, insurance, groceries
  • 30% for wants: leisure, shopping, restaurants
  • 20% for savings: emergency fund, investments, retirement provision

Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Sources & calculation basis

Our calculations are based on the following official sources (as of: July 2026):

Related guides

Financial IndependenceKeeping a Budgeting Journal

The 50/30/20 rule: budgeting made simple

The 50/30/20 rule is one of the most popular budgeting methods worldwide. It splits your net income into three categories: needs, wants and savings.

The big advantage: you don't have to track every single expense. As long as you stay within the three categories, your budget stays balanced.

The three categories in detail

50% needs
Rent, utilities, insurance, groceries, transport, loans – everything you need to live.
30% wants
Restaurants, streaming, shopping, hobbies, vacations, gym membership – everything you could theoretically do without.
20% savings
Emergency fund, ETF savings plan, retirement provision, debt repayment – your wealth building for the future.
Flexible and adjustable
In expensive cities: 60/20/20. With a high income: 40/30/30. The rule is a framework, not a strict requirement.

50/30/20 in practice

Example: €3,000 net income

Example: €3,000 net income
ItemAmount
Monthly net income€3,000
Needs (50%)€1,500
Wants (30%)€900
Savings (20%)€600

Typical fixed cost breakdown

Typical fixed cost breakdown
ItemAmount
Rent (utilities included)€900
Insurance€150
Groceries€300
Transport€100
Phone/internet€50
Total fixed costs€1,500

Tips for putting it into practice

The key to success: automation. Set up standing orders at the start of the month that automatically transfer 20% to your savings account. What's left is yours to spend.

The most important savings priorities

  1. 1. Emergency fund: 3-6 months of expenses in an easily accessible savings account for emergencies.
  2. 2. Pay off debt: High-interest loans (>5%) take priority over investments.
  3. 3. Employer match: With a workplace pension: contribute at least enough to receive the full employer match.
  4. 4. ETF savings plan: Long-term wealth building with broadly diversified ETFs.
  5. 5. Additional retirement provision: Riester, Rürup or private pension insurance depending on your situation.

Frequently asked questions about the 50/30/20 rule

Everything you need to know about budget planning with the 50/30/20 method

The 50/30/20 rule is a simple budgeting method: 50% of net income for needs (rent, groceries, insurance), 30% for wants (leisure, shopping), and 20% for saving and investing.

The rule was popularized by Elizabeth Warren (US senator and economics professor) and her daughter Amelia Warren Tyagi in their book "All Your Worth: The Ultimate Lifetime Money Plan" (2005).

Needs include all necessary expenses: rent/mortgage, utilities, insurance, staple groceries, commuting costs, loan repayments, phone contract. Everything you need to live.

Wants are all non-essential expenses: restaurant visits, Netflix/streaming, shopping, hobbies, vacations, gym membership, brand products instead of store brands. Everything you could theoretically do without.

That's normal in expensive cities. Adjust the rule: reduce the wants share, e.g. to 20%. What matters is that at least 10-20% is left for savings. In the long run, check whether moving or a pay raise is possible.

At least 10% of net income, ideally 20%. Prioritize: 1. Emergency fund (3-6 months of expenses), 2. Pay off debt, 3. Retirement provision (at least the employer match), 4. Further investments.

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