Budget Percentage Calculator

Budget Percentage Calculator

Calculate what percentage of your income goes to each expense category. Understanding your budget percentages helps you identify overspending, compare to recommended guidelines, and make informed financial decisions.

Recommended Budget Percentages

The 50/30/20 Rule

• 50% Needs: Housing, food, utilities, insurance, minimum debt payments
• 30% Wants: Entertainment, dining out, hobbies, non-essential purchases
• 20% Savings & Debt: Emergency fund, retirement, extra debt payments

Detailed Budget Guidelines

• Housing: 25-30% of gross income (28% rule for mortgages)
• Food: 10-15% of income
• Transportation: 10-15% of income
• Utilities: 5-10% of income
• Insurance: 5-10% of income
• Debt Payments: 10-15% of income (minimum payments)
• Savings: 20% of income (ideal, start with 10% if needed)
• Entertainment: 5-10% of income
• Other: 5-10% of income

Housing Budget

28% Rule

Housing costs should not exceed 28% of gross monthly income. This includes:

• Mortgage/rent payment
• Property taxes
• Homeowners/renters insurance
• HOA fees (if applicable)

Example: $5,000/month income × 0.28 = $1,400 max housing costs

Why Housing Matters

Housing is typically your largest expense. Keeping it under 30% leaves room for other expenses and savings. Exceeding 30% can strain your budget.

Food Budget

10-15% Guideline

Includes groceries and dining out. Lower is better - food is an area where you can save significantly.

• Groceries: 7-10% of income
• Dining out: 3-5% of income

Transportation Budget

10-15% Guideline

Includes car payment, gas, insurance, maintenance, and public transit.

• Car payment: 5-8% of income
• Gas & maintenance: 3-5% of income
• Insurance: 2-3% of income

Savings Budget

20% Target

Ideally 20% of income should go to savings:

• Emergency fund: 3-6 months expenses
• Retirement: 10-15% of income
• Other goals: House down payment, vacation, etc.

If 20% isn't possible, start with 10% and increase over time.

Debt Budget

10-15% Guideline

Minimum debt payments should be 10-15% of income. If higher, focus on paying down debt.

Includes: credit cards, car loans, student loans, personal loans.

Analyzing Your Budget

Red Flags

• Housing > 30%: May be house-poor
• Debt > 20%: Too much debt, focus on paying down
• Savings < 10%: Not saving enough
• Expenses > Income: Living beyond means

Good Signs

• Housing ≤ 30%: Manageable housing costs
• Savings ≥ 20%: Building wealth
• Debt ≤ 15%: Manageable debt load
• Positive remaining: Income exceeds expenses

Budget Adjustments

If Housing is Too High

• Consider moving to lower-cost area
• Get a roommate
• Refinance mortgage to lower payment
• Downsize to smaller home

If Savings is Too Low

• Reduce discretionary spending
• Cut entertainment and dining out
• Automate savings (pay yourself first)
• Increase income if possible

If Debt is Too High

• Focus on paying down high-interest debt
• Consider debt consolidation
• Stop using credit cards
• Create debt payoff plan

Budget by Income Level

$3,000/month Income

• Housing: $750-900 (25-30%)
• Food: $300-450 (10-15%)
• Transportation: $300-450 (10-15%)
• Savings: $300-600 (10-20%)
• Other: $750-1,350 (25-45%)

$5,000/month Income

• Housing: $1,250-1,500 (25-30%)
• Food: $500-750 (10-15%)
• Transportation: $500-750 (10-15%)
• Savings: $500-1,000 (10-20%)
• Other: $1,000-1,750 (20-35%)

Creating a Balanced Budget

1. Calculate percentages: See where your money goes
2. Compare to guidelines: Identify problem areas
3. Set priorities: What's most important to you?
4. Make adjustments: Reduce overspending categories
5. Track regularly: Monitor spending monthly
6. Review quarterly: Adjust as income/expenses change

Tips for Better Budgeting

1. Use percentages: Easier to adjust as income changes
2. Pay yourself first: Save before spending
3. Track expenses: Know where every dollar goes
4. Be realistic: Budget for actual spending, not ideal
5. Review regularly: Budgets need adjustment over time
6. Use apps: Budgeting apps make tracking easier