Savings & Debt Repayment (Financial Goals – ~20% of Income)
Your Budget Breakdown:
function calculateBudget() {
var monthlyNetIncome = parseFloat(document.getElementById('monthlyNetIncome').value);
var housingCost = parseFloat(document.getElementById('housingCost').value);
var utilitiesCost = parseFloat(document.getElementById('utilitiesCost').value);
var groceriesCost = parseFloat(document.getElementById('groceriesCost').value);
var transportationCost = parseFloat(document.getElementById('transportationCost').value);
var insuranceCost = parseFloat(document.getElementById('insuranceCost').value);
var minDebtPayments = parseFloat(document.getElementById('minDebtPayments').value);
var wantsDiningEntertainment = parseFloat(document.getElementById('wantsDiningEntertainment').value);
var wantsShoppingPersonal = parseFloat(document.getElementById('wantsShoppingPersonal').value);
var wantsSubscriptionsHobbies = parseFloat(document.getElementById('wantsSubscriptionsHobbies').value);
var wantsOther = parseFloat(document.getElementById('wantsOther').value);
var savingsContributions = parseFloat(document.getElementById('savingsContributions').value);
var extraDebtPayments = parseFloat(document.getElementById('extraDebtPayments').value);
// Validate inputs
if (isNaN(monthlyNetIncome) || monthlyNetIncome <= 0) {
document.getElementById('budgetResult').innerHTML = 'Please enter a valid Monthly Net Income.';
return;
}
// Default all other inputs to 0 if NaN
housingCost = isNaN(housingCost) ? 0 : housingCost;
utilitiesCost = isNaN(utilitiesCost) ? 0 : utilitiesCost;
groceriesCost = isNaN(groceriesCost) ? 0 : groceriesCost;
transportationCost = isNaN(transportationCost) ? 0 : transportationCost;
insuranceCost = isNaN(insuranceCost) ? 0 : insuranceCost;
minDebtPayments = isNaN(minDebtPayments) ? 0 : minDebtPayments;
wantsDiningEntertainment = isNaN(wantsDiningEntertainment) ? 0 : wantsDiningEntertainment;
wantsShoppingPersonal = isNaN(wantsShoppingPersonal) ? 0 : wantsShoppingPersonal;
wantsSubscriptionsHobbies = isNaN(wantsSubscriptionsHobbies) ? 0 : wantsSubscriptionsHobbies;
wantsOther = isNaN(wantsOther) ? 0 : wantsOther;
savingsContributions = isNaN(savingsContributions) ? 0 : savingsContributions;
extraDebtPayments = isNaN(extraDebtPayments) ? 0 : extraDebtPayments;
// Calculate totals for each category
var totalNeeds = housingCost + utilitiesCost + groceriesCost + transportationCost + insuranceCost + minDebtPayments;
var totalWants = wantsDiningEntertainment + wantsShoppingPersonal + wantsSubscriptionsHobbies + wantsOther;
var totalSavingsDebt = savingsContributions + extraDebtPayments;
var totalExpenses = totalNeeds + totalWants + totalSavingsDebt;
var remainingIncome = monthlyNetIncome – totalExpenses;
// Calculate percentages
var needsPercentActual = (totalNeeds / monthlyNetIncome) * 100;
var wantsPercentActual = (totalWants / monthlyNetIncome) * 100;
var savingsDebtPercentActual = (totalSavingsDebt / monthlyNetIncome) * 100;
// Ideal 50/30/20 breakdown
var idealNeedsAmount = monthlyNetIncome * 0.50;
var idealWantsAmount = monthlyNetIncome * 0.30;
var idealSavingsDebtAmount = monthlyNetIncome * 0.20;
// Display results
var resultSummary = "Based on your monthly net income of $" + monthlyNetIncome.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ", here's your budget breakdown:";
document.getElementById('resultSummary').innerText = resultSummary;
document.getElementById('resultNeeds').innerHTML = 'Needs: $' + totalNeeds.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ' (' + needsPercentActual.toFixed(1) + '%)' +
' 50 ? '#dc3545' : '#28a745') + ';">(Ideal: 50% or $' + idealNeedsAmount.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ')';
document.getElementById('resultWants').innerHTML = 'Wants: $' + totalWants.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ' (' + wantsPercentActual.toFixed(1) + '%)' +
' 30 ? '#dc3545' : '#28a745') + ';">(Ideal: 30% or $' + idealWantsAmount.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ')';
document.getElementById('resultSavingsDebt').innerHTML = 'Savings & Debt Repayment: $' + totalSavingsDebt.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ' (' + savingsDebtPercentActual.toFixed(1) + '%)' +
' <span style="color: ' + (savingsDebtPercentActual (Ideal: 20% or $' + idealSavingsDebtAmount.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ')';
var remainingColor = remainingIncome < 0 ? '#dc3545' : '#28a745';
document.getElementById('resultRemaining').innerHTML = 'Remaining Income:$' + remainingIncome.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + '';
var advice = "";
if (remainingIncome 55) {
advice = "Your 'Needs' are quite high. Look for areas to reduce essential expenses, or consider if your income supports your current cost of living.";
} else if (wantsPercentActual > 35) {
advice = "Your 'Wants' spending is a bit high. Trimming discretionary expenses can free up money for savings or debt repayment.";
} else if (savingsDebtPercentActual < 15) {
advice = "Your contributions to 'Savings & Debt Repayment' are lower than recommended. Try to allocate more towards your financial goals.";
} else {
advice = "Great job! Your budget looks well-balanced. Keep tracking your spending to stay on track.";
}
document.getElementById('budgetAdvice').innerText = advice;
document.getElementById('budgetResult').style.display = 'block';
}
Master Your Money with the NerdWallet Budget Calculator
Budgeting is the cornerstone of financial health, helping you understand where your money goes and empowering you to make informed spending and saving decisions. The NerdWallet Budget Calculator, inspired by popular budgeting principles like the 50/30/20 rule, provides a clear framework to allocate your monthly income effectively.
What is the 50/30/20 Budget Rule?
The 50/30/20 rule is a simple yet powerful budgeting guideline that suggests dividing your after-tax income into three main categories:
50% for Needs: These are your essential expenses that you cannot live without. This includes housing (rent or mortgage), utilities, groceries, transportation, insurance, and minimum payments on debts.
30% for Wants: These are discretionary expenses that improve your quality of life but aren't strictly necessary. Examples include dining out, entertainment, shopping, vacations, and subscriptions.
20% for Savings & Debt Repayment: This portion of your income should go towards building your financial future. This includes contributions to an emergency fund, retirement accounts, and any extra payments on high-interest debt beyond the minimums.
While the 50/30/20 rule is a great starting point, it's a guideline, not a strict law. Your personal circumstances, income level, and financial goals might require adjustments. This calculator helps you see how your current spending aligns with these recommendations and where you might need to make changes.
How to Use This Budget Calculator
Enter Your Monthly Net Income: This is the amount of money you take home after taxes and other deductions. Be as accurate as possible.
Input Your Needs: List all your essential monthly expenses. If a category isn't applicable (e.g., you don't pay for public transit), enter 0.
Detail Your Wants: Fill in your discretionary spending. Be honest with yourself about how much you spend on non-essentials.
Specify Savings & Debt Repayment: Enter how much you're putting towards savings goals and any extra debt payments.
Click "Calculate My Budget": The calculator will instantly show you a breakdown of your spending, comparing your actual percentages to the 50/30/20 rule.
Understanding Your Results
The results will show you:
Actual Spending: The total dollar amount and percentage you're allocating to Needs, Wants, and Savings/Debt.
Ideal Allocation: What those amounts and percentages would look like if you followed the 50/30/20 rule perfectly.
Remaining Income: The money left over after all your expenses, or a deficit if you're spending more than you earn.
Personalized Advice: Tips on where you might adjust your spending to better align with your financial goals.
Tips for Effective Budgeting
Track Your Spending: For a month or two, meticulously track every dollar you spend. This will give you a realistic picture for the calculator.
Be Realistic: Don't cut out all your "wants" overnight. Make gradual, sustainable changes.
Automate Savings: Set up automatic transfers from your checking to your savings account each payday.
Review Regularly: Your income and expenses can change. Revisit your budget monthly or quarterly to ensure it still meets your needs.
Prioritize High-Interest Debt: If you have credit card debt, consider allocating more to extra debt payments to save on interest.
By using this calculator and consistently managing your money, you can gain control over your finances, reduce stress, and work towards achieving your long-term financial aspirations.