70/20/10 Rule Money Calculator
Split your income: 70% essentials, 20% savings & debt, 10% lifestyle spending
70/20/10 Budget Calculator
Your take-home income after taxes and deductions
Your 70/20/10 Budget Breakdown
Example Calculation
Monthly Budget Example
Monthly after-tax income: $5,000
Essentials (70%): $5,000 × 0.7 = $3,500
Savings & Debt (20%): $5,000 × 0.2 = $1,000
Lifestyle (10%): $5,000 × 0.1 = $500
What Goes Where?
Essentials: Rent, groceries, utilities, insurance, minimum debt payments
Savings & Debt: Emergency fund, retirement savings, extra debt payments
Lifestyle: Entertainment, hobbies, dining out, personal purchases
70/20/10 Rule Benefits
Simple & Clear
Easy percentages make budgeting straightforward
Balanced Approach
Covers needs while allowing savings and fun
Scales with Income
Works at any income level
Budget Categories
Essentials (70%)
Savings & Debt (20%)
Lifestyle (10%)
Budgeting Tips
Track expenses for a month before starting
Adjust percentages based on your situation
Pay essentials first, then allocate the rest
Review and adjust monthly as needed
Understanding the 70/20/10 Money Rule
What is the 70/20/10 Rule?
The 70/20/10 rule is a budgeting strategy that divides your after-tax income into three clear categories: 70% for essential needs, 20% for savings and debt repayment, and 10% for lifestyle and discretionary spending.
How to Calculate Your Budget
- Essentials (70%): Income × 0.7
- Savings & Debt (20%): Income × 0.2
- Lifestyle (10%): Income × 0.1
Why Use This Rule?
- Easy to follow: Simple percentages make budgeting straightforward
- Balanced approach: Covers essentials while allowing savings and fun
- Flexible framework: Can be adjusted based on your situation
- Works at any income: Scales from $1,000 to $100,000+ monthly
Is It Flexible?
Yes! The 70/20/10 rule is a guideline, not a strict requirement. You can adjust percentages based on your financial situation, debt levels, and goals.