Budget Calculator

This budget calculator helps you create a personalized budget based on your income and expenses. Enter your monthly income and expenses to see a breakdown of your spending and recommendations for a balanced budget.

Monthly Income

Monthly Expenses

Housing

Transportation

Food

Health

Debt Payments

Personal

Other

Savings Goals

How the Budget Calculator Works

The budget calculator helps you analyze your spending patterns and create a balanced budget using these steps:

1. Calculate Total Income

First, we add up all your sources of monthly income:

Total Income = Primary Income + Secondary Income + Other Income

2. Calculate Total Expenses

Next, we add up all your monthly expenses across different categories:

Total Expenses = Housing + Transportation + Food + Health + Debt Payments + Personal + Other

3. Calculate Total Savings

We add up your monthly savings contributions:

Total Savings = Emergency Fund + Retirement + Other Savings

4. Calculate Monthly Cash Flow

Your monthly cash flow shows whether you're spending more or less than you earn:

Cash Flow = Total Income - (Total Expenses + Total Savings)

5. Calculate Savings Rate

Your savings rate shows what percentage of your income you're saving:

Savings Rate = (Total Savings ÷ Total Income) × 100%

6. Calculate Debt-to-Income Ratio

Your debt-to-income ratio shows what percentage of your income goes to debt payments:

Debt-to-Income Ratio = (Debt Payments ÷ Total Income) × 100%

Recommended Budget Allocation

Financial experts often recommend the 50/30/20 rule for budget allocation:

  • 50% for needs (housing, utilities, groceries, transportation, insurance, minimum debt payments)
  • 30% for wants (dining out, entertainment, hobbies, subscriptions)
  • 20% for savings and debt repayment (emergency fund, retirement, additional debt payments)

Tips for a Balanced Budget

  • Aim for a positive cash flow each month
  • Try to save at least 15-20% of your income
  • Keep your debt-to-income ratio below 36%
  • Review and adjust your budget regularly
  • Look for areas where you can reduce expenses if needed
  • Prioritize building an emergency fund of 3-6 months of expenses