The 50/30/20 rule splits net income into three parts: 50% for what you need, 30% for what you want and 20% for savings and debt. It's simple, which is why it works as a first map. This calculator does the maths with your income and lets you move the percentages, because in Latin America the 50% for needs often doesn't fit.
The calculator
Enter your monthly net income to see the split.
Educational tool: the rule is a starting reference, not a recommendation for your case. Adjust the percentages to your situation.
How it's calculated
Each part is net income multiplied by its percentage. Net income is what's left after taxes and contributions: what actually lands in your account. If your income varies, use the average of the last three months or, better, the lowest one: a rule that only works in a good month is no rule.
Worked example. With a net income of $1,000,000: $500,000 for needs (rent, utilities, everyday food, commuting, health, the minimum on each debt), $300,000 for wants (going out, delivery, streaming, clothes you didn't need) and $200,000 for the future (savings, emergency fund, debt payments above the minimum).
If rent alone takes 40%, needs won't fit in 50%. In that case the calculator lets you raise that percentage and the savings share is recalculated on its own: what matters isn't hitting the rule's numbers but knowing how much is left for the future with your real split.
What goes in each part
- Needs: whatever breaks something if you stop paying it. Roof, power, gas, the week's food, the commute, health cover, the minimum payment on debts.
- Wants: whatever is optional this month even if it isn't optional in life. Going out, ordering in, subscriptions, the trip, the clothes that weren't urgent.
- Future: savings, emergency fund, goals, and whatever you pay on debt above the minimum.
The most common mistake is filing wants with a good excuse under needs. If a cheaper version solves the same problem, the difference is a want.
Keeping it up in Kesef
You decide on the rule once; keeping it up is every day. In Kesef you create a budget per category with the amount the calculator gave you, and the app tells you whether you're on track or going fast, and how much you can spend per day until month end. Three budgets are free, which is exactly the rule's three.
Frequently asked questions
Is the 50/30/20 rule calculated on gross or net income?
On net: what's left after taxes and contributions. It's the money you can actually split. If you calculate on gross, the three parts add up to more than you have.
What if my needs exceed 50%?
It's the most common case in the region when rent is heavy. Raise the needs percentage to what you really spend and see how much is left for the future. If it's little, the useful question isn't "how do I get to 50%" but which need has a cheaper version.
Do instalments count as needs or wants?
It depends on what you bought. The fridge instalment is a need; the trip instalment is a want. What matters is that the month's instalment counts in the month it falls, not the whole purchase in the month you made it.
Does it work with irregular income?
Yes, by calculating on the lowest month you expect, not on the average. Whatever is left over in good months goes to the future. The blog post on irregular income develops this.