Budget Planner (50/30/20)
The 50/30/20 budgeting rule divides monthly take-home income into 50% for Needs, 30% for Wants, and 20% for Savings and Investments.
Input Calculation Parameters
₹
Calculation Results
Needs Allocation (50% - Rent, Groceries, EMIs)
0
Wants Allocation (30% - Dining, Outings, Travel)
0
Savings & SIP Allocation (20% Min)
0
How the Calculation Works
Allocates net salary proportionally across the three buckets.
Worked Example
Here is a step-by-step example calculation for ₹80,000 Monthly Salary:
| Parameter | Value |
|---|---|
| Needs | ₹40,000 (50%) |
| Wants | ₹24,000 (30%) |
| Savings | ₹16,000 (20%) |
Scenario Analysis
Comparing different tenures, interest rates, or investment horizons:
| Scenario Label | Key Metric |
|---|---|
| ₹80k Income | Savings: ₹16,000/mo |
Common Mistakes to Avoid
- Classifying lifestyle wants (dining out, high-end smartphones) as essential needs.
Frequently Asked Questions (FAQs)
What should I do with the 20% savings bucket?
Build an emergency fund first (6 months expenses), then invest in SIPs and EPF/PPF.
Authoritative Sources & Regulatory References
Author: SmartPaisa Financial Research Team
Reviewer: Reviewed by Financial Engineering Team
Last Reviewed: 2026-08-17
Financial Disclaimer: This calculator provides estimates for educational purposes only based on standard mathematical formulas and current Indian regulatory guidelines. Actual returns, taxes, or EMI payments may vary depending on bank policies, market volatility, or individual tax brackets. Consult a SEBI-registered investment advisor or Chartered Accountant (CA) before making financial decisions.
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