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
| Field | What to enter |
|---|---|
| After-tax income | Units: per month, per year, per week, every two weeks |
| Living expenses share | In % |
| Savings share | In % |
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) |
|---|---|
| 2,250 | 1,575 |
| 3,375 | 2,362.5 |
| 4,500 | 3,150 |
| 5,625 | 3,937.5 |
| 6,750 | 4,725 |
| 9,000 | 6,300 |
Formula
Living expenses = 70% × after-tax incomeSavings and investing = 20% × after-tax incomeDebt repayment or donations = 10% × after-tax incomeWorked 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.
Frequently asked questions
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.