function calculateMonthlyBudget() {
var income = parseFloat(document.getElementById('monthlyIncome').value) || 0;
var housing = parseFloat(document.getElementById('housingCost').value) || 0;
var utilities = parseFloat(document.getElementById('utilityCost').value) || 0;
var groceries = parseFloat(document.getElementById('groceryCost').value) || 0;
var transport = parseFloat(document.getElementById('transportCost').value) || 0;
var misc = parseFloat(document.getElementById('miscCost').value) || 0;
var totalExpenses = housing + utilities + groceries + transport + misc;
var remainingBalance = income – totalExpenses;
var savingsRatio = income > 0 ? (remainingBalance / income) * 100 : 0;
var resultArea = document.getElementById('resultArea');
var totalExpenseOutput = document.getElementById('totalExpenseOutput');
var remainingBalanceOutput = document.getElementById('remainingBalanceOutput');
var savingsRatioOutput = document.getElementById('savingsRatioOutput');
var statusMessage = document.getElementById('statusMessage');
resultArea.style.display = 'block';
totalExpenseOutput.innerHTML = 'Total Monthly Expenses: ' + totalExpenses.toFixed(2);
remainingBalanceOutput.innerHTML = 'Remaining Monthly Balance: ' + remainingBalance.toFixed(2);
savingsRatioOutput.innerHTML = 'Savings Potential: ' + savingsRatio.toFixed(1) + '%';
if (remainingBalance < 0) {
statusMessage.innerHTML = 'Warning: Your monthly expenses exceed your income.';
statusMessage.style.backgroundColor = '#fdeaea';
statusMessage.style.color = '#c0392b';
} else if (savingsRatio < 20) {
statusMessage.innerHTML = 'Advice: You are saving less than 20% of your income. Consider reviewing expenses.';
statusMessage.style.backgroundColor = '#fff4e5';
statusMessage.style.color = '#d35400';
} else {
statusMessage.innerHTML = 'Great! You have a healthy monthly surplus.';
statusMessage.style.backgroundColor = '#eafaf1';
statusMessage.style.color = '#27ae60';
}
}
Understanding Monthly Calculations for Financial Stability
Performing a comprehensive monthly calculation of your finances is the first step toward achieving long-term wealth and security. By breaking down your income and expenditures into a 30-day cycle, you can identify patterns, eliminate waste, and ensure that your savings goals are met consistently.
Key Components of a Monthly Calculation
A standard monthly assessment typically involves several core data points:
Total Net Income: This is the amount of money that actually hits your bank account after taxes and deductions. It is the baseline for all your calculations.
Fixed Monthly Costs: These are recurring expenses that rarely change, such as rent, mortgage, or fixed insurance premiums.
Variable Monthly Costs: These expenses fluctuate based on usage, such as electricity, groceries, and fuel.
Discretionary Spending: This includes entertainment, dining out, and non-essential subscriptions.
The Importance of the Savings Ratio
In financial planning, the percentage of your income that remains after all expenses are paid is known as your "Savings Ratio." Most financial experts recommend a ratio of at least 20%. If your monthly calculation shows a ratio lower than this, it may be time to audit your variable costs or find ways to increase your primary income stream.
Example Monthly Calculation
Let's look at a realistic scenario for a professional living in an urban area:
Category
Amount
Net Monthly Income
4,500.00
Rent & Insurance
1,600.00
Utilities & Internet
250.00
Groceries & Dining
700.00
Total Surplus
1,950.00
By using this Monthly Budget & Disposable Income Calculator, you can visualize your "Burn Rate"—the speed at which you spend your income—and adjust your lifestyle to ensure you are building a robust financial future.