Monthly Budget Calculator
Plan your finances and track your monthly surplus
Monthly Income
Fixed Expenses (Needs)
Variable Expenses (Wants)
Total Monthly Income:
0.00
Total Monthly Expenses:
0.00
Remaining Balance:
0.00
Savings Rate:
0%
How to Use the Monthly Budget Calculator
Managing your personal finances starts with a clear understanding of where your money is going. This calculator allows you to categorize your income and expenses to see exactly how much you are saving (or overspending) each month.
To get the most accurate result, follow these steps:
- Gather your bank statements: Look at the last 30 days of transactions.
- Input Net Income: Only use the money that actually hits your bank account after taxes.
- Differentiate Fixed vs. Variable: Fixed costs are things like rent that stay the same. Variable costs fluctuate, like dining out or fuel.
Understanding the 50/30/20 Rule
Financial experts often recommend the 50/30/20 budgeting framework to ensure long-term stability:
- 50% for Needs: Rent, utilities, insurance, and basic groceries.
- 30% for Wants: Shopping, dining out, and hobbies.
- 20% for Savings: Debt repayment, emergency funds, and investments.
Practical Example
Let's say your Net Monthly Income is $4,000. Using the calculator:
- Fixed Expenses: Rent ($1,200), Utilities ($200), Insurance ($150) = $1,550.
- Variable Expenses: Groceries ($400), Transport ($200), Entertainment ($300) = $900.
- Calculation: $4,000 – ($1,550 + $900) = $1,550 Surplus.
- Savings Rate: ($1,550 / $4,000) * 100 = 38.75%.
In this example, you are well above the 20% savings recommendation, putting you in a strong financial position.
Tips to Improve Your Monthly Budget
If your Remaining Balance is negative or zero, consider these adjustments:
- Audit Subscriptions: Many people pay for streaming services or gym memberships they no longer use.
- Reduce Dining Out: Food is often the largest variable expense that can be easily trimmed.
- Automate Savings: Set up a transfer to your savings account immediately after you get paid so you don't "see" the money as available to spend.