Budget Calculator India 2026 - 50-30-20 Rule
Create your monthly budget with the 50-30-20 rule. Track expenses by category and compare actual vs ideal spending to optimize your finances.
Choose Your Budgeting Method
Income & Expenses
Your salary after taxes and deductions
🏠 Needs (Essential Expenses)
🎉 Wants (Lifestyle Expenses)
💰 Savings & Investments
Total amount you save or invest each month
Monthly Income
₹75,000
Expenses
₹0
Savings
₹20,000
Balance
₹0
Budget Breakdown
Actual vs Ideal Comparison
| Category | Actual | Ideal | Status |
|---|---|---|---|
| Needs | ₹0 | ₹0 | ✅ |
| Wants | ₹0 | ₹0 | ✅ |
| Savings | ₹20,000 | ₹0 | ✅ |
💡 Action Items to Improve Your Budget
Expense Details
Understanding Budget Rules
What is the 50-30-20 Rule?
The 50-30-20 rule is a simple budgeting framework that divides your after-tax income into three categories: 50% for needs, 30% for wants, and 20% for savings and investments. It was popularized by Senator Elizabeth Warren in her book "All Your Worth."
50% - Needs
- • Rent/EMI
- • Groceries
- • Utilities
- • Transportation
- • Insurance
- • Minimum loan payments
30% - Wants
- • Dining out
- • Entertainment
- • Shopping
- • Hobbies
- • Vacations
- • Subscriptions
20% - Savings
- • SIP in mutual funds
- • Emergency fund
- • FD/RD
- • PPF/EPF
- • Stock investments
- • Retirement fund
Needs vs Wants - How to Decide?
Ask yourself: "Can I survive without this?" If yes, it's a want. If no, it's a need. However, be honest with yourself. Netflix subscription is a want, not a need. Basic internet for work might be a need, but 300 Mbps speed is a want.
How to Reduce Expenses?
- Housing: Consider roommates, move to cheaper area, or negotiate rent
- Food: Cook at home, meal prep, reduce food delivery orders
- Transportation: Use public transport, carpool, or bike for short distances
- Subscriptions: Cancel unused OTT, gym, or app subscriptions
- Entertainment: Free activities, library books, home cooking instead of dining out
- Shopping: 30-day rule (wait 30 days before buying), buy used items
How to Increase Savings Rate?
- Automate savings: Set up auto-debit on salary day
- Pay yourself first: Save before spending, not after
- Increase with raises: Save 50% of every salary increment
- Side income: Freelancing, part-time work, or selling skills
- Windfalls: Save 100% of bonus, tax refunds, or gifts
Budget for Different Income Levels
₹30,000/month income:
Needs: ₹15,000 | Wants: ₹9,000 | Savings: ₹6,000
₹75,000/month income:
Needs: ₹37,500 | Wants: ₹22,500 | Savings: ₹15,000
₹1,50,000/month income:
Needs: ₹75,000 | Wants: ₹45,000 | Savings: ₹30,000
Frequently Asked Questions
1. What is the 50-30-20 rule of budgeting?
The 50-30-20 rule says you should spend 50% of your income on needs (rent, food, bills), 30% on wants (entertainment, shopping), and save 20% for future (investments, emergency fund).
2. Is 20% savings enough in India?
20% is a good starting point, but Indians should aim for 30-40% savings rate due to lower social security. If possible, follow 60-40 rule (60% expenses, 40% savings) for faster wealth building.
3. What if I can't save 20% of my salary?
Start with whatever you can - even 5% is better than nothing. Then gradually increase by reducing wants. If truly impossible, focus on increasing income through skills, side hustle, or job switch.
4. How to budget on ₹25,000 salary?
On low income, you may need 70% for needs, 10% for wants, 20% savings. Focus on shared housing, cooking at home, public transport. As income grows, adjust the ratio to save more.
5. Should EMI be counted in needs or wants?
Home loan EMI is a need. Car loan or personal loan could be wants. Education loan is a need. Credit card debt is usually wants gone wrong. Try to keep total EMIs under 40% of income.
6. How to stick to a budget?
Track expenses daily using apps (Money Manager, Wallet), use cash for wants (limit overspending), review weekly, automate savings on salary day, and keep emergency fund so you don't break budget for small emergencies.
7. What is zero-based budgeting?
Zero-based budgeting means every rupee is assigned a job. Income - Expenses - Savings = 0. You plan where every rupee goes before month starts. More detailed than 50-30-20 but requires discipline.
8. Should I create separate budgets for each month?
Yes! Some months have festivals (Diwali, gifts), others have insurance renewals. Create annual calendar of big expenses, distribute them monthly. Build buffer category for variable expenses.
9. How much should rent be of salary?
Ideally 25-30% of take-home salary. Maximum 35% in expensive cities like Mumbai, Bangalore. If rent is 50% of salary, either find roommates, move to cheaper area, or increase income urgently.
10. What if I have irregular income (freelancer)?
Calculate average monthly income from last 6 months. Budget on lowest month's income. In good months, save extra in buffer fund. Maintain 12 months emergency fund instead of 6 months for salaried people.