Budget Calculator
Plan your monthly budget by category and find your savings rate
Monthly Surplus
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Frequently Asked Questions
How much of my income should go to housing?
The standard rule is to keep housing costs under 30% of gross income (or 28% for a mortgage). Some financial experts use 25% of net take-home pay. Above 30% is considered cost-burdened by the US Department of Housing.
What is the 50/30/20 budgeting rule?
50% to needs (housing, food, transport, utilities), 30% to wants (dining, entertainment, subscriptions), 20% to savings and debt repayment. It provides structure while allowing flexibility. Adjust percentages based on your income and goals.
How do I track my spending?
Bank and credit card statements are the most accurate source. Apps like YNAB, Mint, Copilot, or Monarch Money link to accounts and auto-categorize. A simple spreadsheet works too. Review weekly or monthly to catch overspending early.
What should be in an emergency fund?
3–6 months of essential expenses (housing, food, transport, utilities, insurance). Not total income — just what you need to survive. Keep it in a high-yield savings account (HYSA) for 4–5% APY and easy access.
How do I stop overspending?
Track every expense for 30 days (awareness alone reduces spending). Use a zero-based budget (assign every dollar). Try envelope budgeting for variable categories. Delay discretionary purchases 24–48 hours (reduces impulse buying by 50%+).
Average American Spending (2023)
| Category | Monthly Avg | % of Income |
|---|---|---|
| Housing | $2,025 | 32% |
| Food | $779 | 12% |
| Transportation | $1,025 | 16% |
| Healthcare | $421 | 7% |
| Entertainment | $301 | 5% |
| Clothing | $163 | 3% |
Source: BLS Consumer Expenditure Survey
Savings Rate and Retirement Age
Higher savings rates dramatically reduce how long you need to work: