— Budgeting
Budget Calculator
Build a monthly budget from income and expenses by category. See surplus or deficit, savings rate, where every dollar goes, budgeted versus actual spending, and automatic needs, wants, and savings split.
Monthly surplus
$940
- Total income
- $5,000
- Total expenses
- $4,060
- Savings rate
- 30.8%
- Essential (needs)
- $2,800
- Discretionary (wants)
- $660
- Allocated to savings
- $600
- Over budget
- $160
- Annual surplus
- $11,280
Try: $5k income, typical spending, Two incomes, Living beyond means
— Category | budgeted | actual | % of income
| Category | Budgeted | Actual | % of income |
|---|---|---|---|
| Housing | $1,500 | $1,500 | 30% |
| Utilities | $200 | $220 | 4.4% |
| Groceries | $500 | $550 | 11% |
| Dining out | $300 | $350 | 7% |
| Transport | $400 | $380 | 7.6% |
| Insurance | $150 | $150 | 3% |
| Entertainment | $200 | $250 | 5% |
| Subscriptions | $50 | $60 | 1.2% |
| Savings | $600 | $600 | 12% |
| Total expenses | $3,900 | $4,060 | 81.2% |
— Where the money goes
Download— How it works
Surplus = total income − total expenses. Savings rate = (income − needs − wants) ÷ income. Each category’s share of income = its spending ÷ income. Categories are sorted into essential, discretionary or savings by name.
Surplus, deficit and savings rate
The headline number is simple: income minus everything you spend. A surplus is money you can save, invest or throw at debt; a deficit means you’re running down savings or borrowing to fund your life, and the gap has to be closed. The savings rate — the share of income you don’t spend on needs or wants — is the single best gauge of financial progress. A common target is 20% or more, but any rate you can sustain and grow beats a perfect plan you abandon. The calculator works both out as you type.
Worked example — $5,000 income against $4,060 of spending: Surplus = $940 a month, or $11,280 over a year. With $940 plus a $600 savings line not counted as spending on needs or wants, the savings rate works out around 31%.
Needs, wants and budget vs actual
The calculator sorts each category by name into three buckets: essential needs (housing, food, transport, utilities, insurance, debt), discretionary wants (dining, entertainment, subscriptions, shopping) and savings. The split tells you how much of your income is committed versus flexible — and where to cut if a deficit looms, since wants are far easier to trim than needs. Add a budgeted figure beside each actual and the calculator flags whether you came in over or under plan, both overall and category by category in the table. That budget-versus-actual loop is where the discipline lives.
Making it realistic
A budget only works if it reflects real life. Use net, take-home income, not gross, so the figure is money you actually receive. Don’t forget irregular costs — annual insurance, holidays, car servicing — by entering a twelfth of each as a monthly line, so they don’t ambush you. List every subscription; they’re small individually and large together. And treat savings as a fixed expense you pay first, not whatever happens to be left over. Revisit the budget monthly, comparing actual to plan, and adjust. This is an arithmetic planner, not financial advice — but the act of writing it down is most of the battle.
— Reader questions
How do I make a monthly budget?
List your income, then your expenses by category. Subtract total expenses from total income: a positive result is your surplus, a negative one a deficit. Aim to give every dollar a job and to keep a healthy gap for savings.
What is a good savings rate?
A common target is to save at least 20% of your income, as in the 50/30/20 rule. But the right rate depends on your goals and circumstances — what matters most is saving consistently and increasing the rate over time.
What’s the difference between needs and wants?
Needs are essentials you can’t easily avoid — housing, food, transport, utilities, insurance, minimum debt payments. Wants are discretionary — dining out, entertainment, subscriptions, shopping. When money is tight, wants are where to cut first.
How do I budget for annual or irregular expenses?
Divide the yearly cost by twelve and enter that as a monthly line. Setting aside a twelfth of your insurance, holidays or car servicing each month means the bill is covered when it arrives, instead of blowing the budget.
Should I use gross or net income?
Use net, take-home income — the amount that actually lands in your account after tax and deductions. Budgeting on gross income overstates what you have to spend and leads to a plan that doesn’t balance.