# 70/20/10 Rule Money Calculator

URL: https://speedycalculator.com/calculators/finance/70-20-10/
Last updated: 2026-10-25

> The 70/20/10 rule calculator splits your after-tax income into 70% for living expenses, 20% for savings and investing and 10% for debt repayment or giving.

## Inputs

- After-tax income (per month, per year, per week, every two weeks)
- Living expenses share (%)
- Savings share (%)

## Results

- Living expenses (monthly)
- Savings and investing (monthly)
- Debt repayment or donations (monthly)
- Saved per year
- Savings after 10 years at 5% a year

## Formula

```
Living expenses = 70% × after-tax income
Savings and investing = 20% × after-tax income
Debt repayment or donations = 10% × after-tax income
```

## Explanation

The 70/20/10 budget is a simpler alternative to 50/30/20: all spending – needs and wants together – fits in one 70% bucket, leaving a fixed 30% for your future. Once debts are paid, the 10% can go to savings or charity.

### How to use the 70/20/10 Rule Money Calculator

- **After-tax income**
- **Living expenses share**
- **Savings share**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter your after-tax income and choose the period.

### Tips

- Use your real spending from bank statements rather than guesses.
- Automate savings so they happen before you spend.
- Revisit your plan once a year or after any big life change.
- Keep an emergency fund before investing for long-term goals.

### Common mistakes to avoid

- Underestimating irregular expenses such as car repairs, gifts and annual bills.
- Ignoring inflation for long-term goals.
- Taking on high-interest debt to fund wants.

### Inputs explained

FieldWhat to enterAfter-tax incomeUnits: per month, per year, per week, every two weeksLiving expenses shareIn %Savings shareIn %

### What each result means

- **Living expenses (monthly)** = [After-tax income]×[Living expenses share]÷100
- **Savings and investing (monthly)** = [After-tax income]×[Savings share]÷100
- **Debt repayment or donations (monthly)** = [After-tax income]×(100 - [Living expenses share] - [Savings share])÷100
- **Saved per year** = [After-tax income]×[Savings share]÷100×12
- **Savings after 10 years at 5% a year** = fvc(0.05÷12, 120, 0, [After-tax income]×[Savings share]÷100)

### Example values

How the main result changes when **After-tax income** changes and everything else stays at the example values above:

After-tax income (per month)Living expenses (monthly)2,2501,5753,3752,362.54,5003,1505,6253,937.56,7504,7259,0006,300

## Worked example

Inputs — After-tax income: $4,500 per month; Living expenses share: 70 %; Savings share: 20 %.

Results — **Living expenses (monthly) = $3,150.00**; Savings and investing (monthly) = $900.00; Debt repayment or donations (monthly) = $450.00; Saved per year = $10,800.00; Savings after 10 years at 5% a year = $139,754.05.

## FAQ

**What is the 70/20/10 rule?**
Spend 70% of take-home pay, save 20% and use 10% for debt or giving.

**How is it different from 50/30/20?**
It doesn't separate needs from wants and saves 20% plus 10% for debt.

**What if I have no debt?**
Put the 10% toward savings, investing or donations.

**What formula does the 70/20/10 Rule Money Calculator use?**
Living expenses = 70% × after-tax income.